What was the net cash provided by operating activities for Creative World School in 2022?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
uthorized, issued and | | | | | outstanding | 7,425 | 7,425 | 7,425 | | Additional paid-in capital | 60,456 | 60,456 | 60,456 | | Retained earnings | 1,272,073 | 908,731 | 1,312,666 | | TOTAL STOCKHOLDERS' EQUITY | 1,340,029 $ 2,406,340 | 9 76,687 $ 1,747,319 | 1,380,622 |#### STATEMENTS OF CASH FLOWS
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ 616,858 | $ 772,173 | $ 587,688 |
| Net income | |||
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities: | 13,192 | 9,525 | 48,026 |
| Depreciation and amortization | |||
| Amortization of operating lease | |||
| right-of-use assets | 98,443 | 81,013 | 80,000 |
| Increase in royalties | |||
| receivable - unaffiliated | (9,743) | (34,767) | (10,768) |
| (Increase) decrease in royalties | |||
| receivable - affiliated Net decrease in due from/to related parties | (9,177) 69,797 | 7,483 37,478 | 38,749 51,791 |
| (Increase) decrease in other current assets | (36,488) | 2,669 | (35,726) |
| Increase (decrease) in accounts payable | (4,882) | 17,428 | (45,718) |
| Increase (decrease) in accrued expenses | 181,226 | (65,944) | (153,614) |
| Increase in deferred franchise | |||
| fees and deposits Decrease in operating lease liabilities NET CASH PROVIDED BY | 108,502 (96,109) | 203, |
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $587,688. This reflects the cash generated from the company's core business operations during that year. Understanding the sources and amounts of cash flow is crucial for assessing the financial health and sustainability of Creative World School.
In addition to the net cash provided by operating activities, the FDD provides a breakdown of factors contributing to this figure. These include adjustments to reconcile net income, such as depreciation and amortization ($48,026), amortization of operating lease right-of-use assets ($80,000), and changes in various balance sheet accounts like royalties receivable and accounts payable. These adjustments provide a more detailed view of the cash inflows and outflows related to Creative World School's operations.
Prospective franchisees should carefully examine these figures to understand how Creative World School generates cash and to assess the stability and predictability of its cash flows. Analyzing these trends over multiple years, as presented in the table, can offer insights into the company's financial performance and its ability to support its franchise system. It's also important to compare these figures to industry benchmarks to evaluate Creative World School's performance relative to its competitors.