What was the net cash provided by operating activities for Creative World School in 2024?
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) | 203,986 (81,013) | 31,014 (80,000) |
| OPERATING ACTIVITIES | 931,619 | 950,031 | 511,442 |
| CASH FLOWS FROM INVESTING ACTIVITIES | (10,400) | - | (14,664) |
| Purchase of property and equipment | |||
| NET CA |
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 2024 was $931,619. This figure 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 various adjustments made to reconcile net income to this figure. These adjustments include depreciation and amortization ($13,192), amortization of operating lease right-of-use assets ($98,443), and changes in royalties receivable and payable. These adjustments provide a more detailed view of the factors influencing Creative World School's cash flow from operations.
Prospective franchisees should carefully review these figures and consider how they might impact their own franchise's financial performance. While past performance is not indicative of future results, understanding the franchisor's financial history can provide valuable insights into the potential risks and rewards of investing in a Creative World School franchise. It is advisable to consult with a financial advisor to fully assess the financial implications of this franchise opportunity.