What was the net cash used by investing activities for Expense Reduction Analysts in 2023?
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 |
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 used by investing activities in 2023 was $47,976. This figure reflects the total cash outflow related to investments made by the company during that year.
Specifically, this includes $35,403 spent on the development of internal-use software and $13,733 on purchases of property and equipment. These investments are typical for businesses that require software and physical assets to operate. However, Expense Reduction Analysts also received $1,160 from the proceeds of the sale of equipment, which partially offset the cash outflow from investing activities.
For a prospective franchisee, understanding these figures provides insight into how Expense Reduction Analysts allocates capital. While the net cash used by investing activities indicates spending on long-term assets, the amounts are relatively modest. This suggests that Expense Reduction Analysts may not require significant ongoing investment in these areas, which could be a positive sign for the financial stability of the company.