What was the net cash used in financing activities for Creative World School in 2022?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Principal payments on finance lease liabilities | (2,054) | (2,031) | (2,002) |
| Distributions paid to stockholders | (253,516) | (1,176,108) | (625,999) |
| NET CASH USED IN | |||
| FINANCING ACTIVITIES | (255,570) | (1,178,139) | (628,001) |
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 used in financing activities in 2022 was ($628,001). This figure represents the total cash outflow related to the company's financing activities during that year.
Specifically, this amount includes principal payments on finance lease liabilities totaling ($2,002) and distributions paid to stockholders amounting to ($625,999). These payments reflect the company's obligations to lenders and returns to its equity holders, respectively.
For a prospective franchisee, understanding these cash flow dynamics is crucial. It provides insight into how Creative World School manages its debt and equity financing, which can impact the financial stability and growth potential of the franchise system. Monitoring these trends over several years, as presented in the FDD, can offer a more comprehensive view of the company's financial management practices.