What was the net cash provided (used) by financing activities for Expense Reduction Analysts in 2022?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | () | restated) 2022 | ||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | 277.7 | |||
| Net Income | $ | 1,151,726 | $ | 156,786 |
| Adjustments to Reconcile Net Income to Net Cash | ||||
| Provided (Used) by Operating Activities: | ||||
| Depreciation and Amortization | 16,176 | 8,120 | ||
| Noncash Operating Lease Expense | (83) | 752 | ||
| Deferred Income Taxes | 126,213 | (25,851) | ||
| Effects of Changes in Operating Assets and Liabilities: | ||||
| Accounts Receivable | (257,417) | 95,648 | ||
| Prepaid Incremental Franchise Costs | 100 | |||
| Prepaid Expenses and Other Assets | (591,166) | 28,358 | ||
| Accounts Payable | 63,936 | (65,897) | ||
| Accrued Expenses | 141,931 | (81,014) | ||
| Training Fees Payable | 41,750 | (27,750) | ||
| Prepaid Federal Income Tax/Federal Income Tax Payable | (287,992) | (135,844) | ||
| Deferred Revenue | 584,936 | (245, 181) | ||
| Due to Franchisees | 18,257 | 1,933 | ||
| Net Cash Provided (Used) by Operating Activities | 1,008,267 | (289,940) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | 230 200 | |||
| Development of Internal-Use Software | (35,403) | (40,834) | ||
| Proceeds on Sale of Equipment | 1,160 | 175 x 4 7 6 | ||
| Repurchase of Area Development Territory | - | (424,001) | ||
| Purchases of Property and Equipment | (13,733) | _ | (8,334) | |
| Net Cash Used by Investing Activities | (47,976) | (473,169) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | 15.25 2.21 | 000 100 | ||
| Advances from (Payments to) Related Parties |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the net cash provided by financing activities in 2022 was $229,498. This indicates the amount of cash Expense Reduction Analysts received from financing activities, such as loans or investments, minus the amount of cash it used for financing activities, such as repayments of debt.
For a prospective franchisee, understanding the cash flow from financing activities can provide insights into how Expense Reduction Analysts manages its capital structure. A positive cash flow from financing activities might suggest that the company is actively raising capital, which could be used for expansion or other investments. However, it is important to consider the specific financing activities that contributed to this cash flow, as taking on debt could have implications for the company's financial stability.
It's also worth noting that the FDD includes an Independent Auditor's Report, indicating that Expense Reduction Analysts' financial statements have been audited by an independent accounting firm. This provides an additional level of assurance regarding the accuracy and reliability of the financial information presented. Franchisees should review the complete financial statements and related notes to gain a comprehensive understanding of Expense Reduction Analysts' financial performance and position.