What was the net cash provided by operating activities for Engineering For Kids in 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
,219 | 37,219 | | BALANCE, December 31, 2024 | $ 100 | $ 112,512 | $ 112,612 |
ENGINEERING FOR KIDS INTERNATIONAL, LLC STATEMENTS CASH FLOWS YEARS ENDED DECEMBER 31, 2024 2023, AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| INCREASE (DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS | |||
| Cash flows from operating activities | $ 37,219 | $ 34,933 | $ 56,260 |
| Net income | |||
| Adjustments to reconcile net income to | |||
| net cash provided (used) by operating activities | |||
| Amortization | 10,437 | - | 2,235 |
| Changes in assets and liabilities | |||
| Accounts receivable | (13,138) | 16,709 | (44,865) |
| Prepaid expenses | 3,625 | 111 | 8,879 |
| Accounts payable | (320) | (6,318) | - |
| Due to/from related party | (130,008) | 63,874 | 30,249 |
| Accrued liabilities | (1,927) | 6,244 | (20,060) |
| Total adjustments | (131,331) | 80,620 | (23,562) |
| Net cash provided (used) by operating activities | (94,112) | 115,553 | 32,698 |
| Cash flows from investing activities | |||
| Investment in intangible assets | (1,808) | (28,934) | (22,345) |
| NET INCREASE (DECREASE) IN CASH AND | (95,920) | 86,619 |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the net cash provided by operating activities for the company in 2023 was $115,553. This figure reflects the cash generated from the company's core business operations, taking into account revenues, expenses, and changes in working capital accounts. Analyzing cash flow from operations provides insight into the financial health and sustainability of Engineering For Kids.
Specifically, the statement of cash flows details how Engineering For Kids generated and used cash during the specified period. It starts with net income and then adjusts for non-cash items such as depreciation and amortization, as well as changes in assets and liabilities like accounts receivable, prepaid expenses, accounts payable, and accrued liabilities. These adjustments convert net income from an accrual basis to a cash basis, offering a clearer picture of the company's actual cash inflows and outflows related to its operations.
For a prospective Engineering For Kids franchisee, understanding the franchisor's cash flow from operations is crucial. A positive and stable cash flow indicates that the franchisor is effectively managing its business and has the resources to support its franchisees. It suggests that Engineering For Kids can reinvest in the brand, develop new programs, and provide ongoing support to its franchise network. Conversely, a declining or negative cash flow could raise concerns about the franchisor's financial stability and its ability to deliver on its promises.