What was the net cash provided by operating activities for C12 Group in 2021?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
pital - End of Year | $ 1,843,880 | $ 1,312,531 | The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flows Years Ended December 31, 2022 and 2021
| 2022 | 2021 | |
|---|---|---|
| Cash Flows From Operating Activities: | $ 640,867 | $ 296,300 |
| Net Income | ||
| Adjustments to Reconcile Net Income to Net Cash | ||
| Provided (Used) by Operating Activities: | 101,471 | 57,769 |
| Depreciation and Amortization | ||
| (Increase) Decrease in: | ||
| Accounts Receivable Supplies Inventory and Other Assets Other Operating Lease Right-of-Use Assets Increase (Decrease) in: | (84,865) (63,920) 12,669 124,177 | (37,300) 32,237 (35,816) - |
| Accounts Payable | 51,858 | 135,405 |
| Accrued Liabilities | (1,643) | 57,238 |
| Unearned Revenue | 815,784 | (266,018) |
| Operating Lease Liabilities | (131,509) | - |
| Net Cash Provided by Operating Activities | 1,464,889 | 239,815 |
| Cash Flows From Investing Activities: Purchase of Property and Equipment Proceeds from Sale of Fixed Assets Net Cash Used by Investing Activities | (102,668) - (102,668) | (297,463) - (297,463) |
| Cash Flows From Financing Activities: Distributions Net Cash Used by Financing Activities | (109,518) (109,518) | (269,679) (269,679) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 1,252,703 | (327,327) |
| Cash and Cash Equivalents, Beginning of Year | 680,666 | 1,007,993 |
| Cash and Cash Equivalents, End of Year | $ 1,933,369 | $ 680,666 |
| Supplemental Disclosures: | ||
| State Income Taxes Paid | $ 3,393 | $ 33,419 |
Notes to Consolidated Financial Statements December 31,
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2021 was $239,815. This figure reflects the cash generated from the company's core business operations during that year. Understanding this number is crucial for potential franchisees as it provides insight into the financial health and stability of C12 Group. It indicates the company's ability to generate cash from its operations, which can be used for investments, debt repayment, and other business activities.
Specifically, the net cash provided by operating activities is calculated by adjusting net income with non-cash items and changes in working capital accounts. These adjustments include depreciation and amortization, changes in accounts receivable, supplies inventory, other assets, accounts payable, accrued liabilities, and unearned revenue. For instance, in 2021, C12 Group had adjustments such as a decrease in accounts receivable of ($37,300) and an increase in accounts payable of $135,405, among other factors, which contributed to the final net cash provided by operating activities.
For a prospective franchisee, a positive net cash flow from operating activities suggests that C12 Group is effectively managing its resources and generating sufficient cash from its business model. This can be a reassuring sign, indicating that the franchise system is sustainable and has the potential for growth. However, it's important to compare this figure with previous years and industry benchmarks to assess the overall performance and identify any trends or potential areas of concern. Reviewing these figures in the context of the broader financial statements can provide a more comprehensive understanding of C12 Group's financial standing.
It is also worth noting that the FDD includes additional cash flow information, such as cash flows from investing and financing activities. In 2021, C12 Group had cash flows used by investing activities of ($297,463) primarily from the purchase of property and equipment, and cash flows used by financing activities of ($269,679) due to distributions. These figures, combined with the net cash from operating activities, resulted in a net decrease in cash and cash equivalents of ($327,327) for the year. Analyzing all these cash flow components can offer a more complete picture of C12 Group's financial dynamics and how it manages its cash resources.