What was the cash and cash equivalents at the beginning of 2023 for Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ertain internal control related matters that we identified during the audit.
March 31, 2025
ENGINEERING FOR KIDS INTERNATIONAL, LLC BALANCE SHEETS DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 21,735 | $ | 117,655 | $ | 31,036 |
| Accounts receivable, net of allowance for credit losses | 58,661 | 45,523 | 62,234 | |||
| Due from related party | 14,968 | - | - | |||
| Prepaid expenses | 2,575 | 6,200 | 6,311 | |||
| Total current as |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2023 was $31,036. This figure represents the amount of readily available funds the company had at the start of the year, which can be used for day-to-day operations, investments, or other business activities.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the company's capacity to invest in new initiatives, technology, or marketing efforts that benefit the entire franchise system.
However, it's important to consider this figure in context. While $31,036 was the starting cash position for 2023, the statement of cash flows shows that Engineering For Kids' cash and cash equivalents increased to $117,655 by the end of 2023. This increase reflects the company's cash inflows and outflows throughout the year, providing a more complete picture of its financial performance. Reviewing these trends over multiple years can offer a better understanding of the company's financial health and stability.
A potential franchisee should also compare these figures with those of other franchise systems in the same industry to benchmark Engineering For Kids' financial performance. Additionally, it would be prudent to inquire about the factors that contributed to the changes in cash and cash equivalents during 2023 to gain further insights into the company's financial management practices.