What was the net cash used in investing 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 used in investing activities in 2024 was $10,400. This figure represents the total cash outflow related to investments made by Creative World School during that year. These investments typically include the purchase of property and equipment, which are essential for the company's operations and future growth.
For a prospective franchisee, understanding the investing activities of the franchisor can provide insights into how the company manages its resources and invests in its future. A consistent pattern of investment may indicate a commitment to growth and innovation, while a lack of investment could raise concerns about the company's long-term prospects. In 2024, Creative World School's investment activities involved the purchase of property and equipment, resulting in a cash outflow of $10,400.
It's important to note that investing activities are just one component of a company's overall financial health. To gain a comprehensive understanding, prospective franchisees should also review Creative World School's cash flows from operating and financing activities, as well as its overall financial statements. This will provide a more complete picture of the company's financial performance and its ability to support its franchisees.