What was the decrease (increase) in other current assets for Focus Cfo in 2023?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Contributions | 83,404 | 85,545 | 74,980 | | Distributions | (919,714) | (1,339,352) | (740,138) | | Balance as of end of period | $ 723,721 | $ 324,472 | $ 741,099 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ending December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ 1,235,559 | $ 837,180 | $ 990.076 |
| Adjustments to reconcile net income to net cash provided by operating activities | 4 1,200,000 | $ 007,100 | $ 000,070 |
| Depreciation and amortization | 10,395 | 7,796 | 1,667 |
| Changes in assets and liabilities: | • | , | |
| Decrease (increase) in accounts receivables | 21,701 | (9,392) | 56,245 |
| Decrease (increase) in other current assets | (42,342) | (35,739) | (24,311) |
| Decrease (increase) in other long term assets | 19,280 | 12,580 | |
| (Decrease) increase in accounts payable | 24,255 | (27,804) | 23,846 |
| Increase in accrued compensation | 121,379 | 2 |
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, in 2023, there was a decrease (increase) in other current assets of ($35,739). This figure is part of the cash flow statement, reflecting changes in the company's assets and liabilities. These figures are derived from the consolidated financial statements of Focus CFO Group, LLC and Subsidiary. The decrease (increase) in other current assets is a line item within the broader category of 'Changes in assets and liabilities' under 'Cash Flows from Operating Activities.'
For a prospective franchisee, understanding these cash flow dynamics is crucial. A decrease (increase) in other current assets can signify various underlying factors, such as changes in prepaid expenses, inventory, or other short-term assets. While a decrease might suggest the company is utilizing its assets more efficiently, an increase could indicate accumulation of assets that are not immediately generating cash. It's important to note that this ($35,739) figure is part of a larger financial picture, and its implications should be evaluated in conjunction with other financial metrics, such as net income ($837,180) and overall cash flow from operating activities ($1,157,852).
Focus Cfo's financial statements are audited by an independent auditor, ensuring that they are presented fairly and in accordance with accounting principles generally accepted in the United States of America. The decrease (increase) in other current assets is one of several adjustments made to reconcile net income to net cash provided by operating activities. Other adjustments include depreciation and amortization ($7,796), decrease (increase) in accounts receivables (($9,392)), and (decrease) increase in accounts payable (($27,804)).
Prospective franchisees should analyze these figures to assess the financial health and stability of Focus Cfo. Understanding the nuances of these financial statements can help franchisees make informed decisions and evaluate the potential risks and rewards associated with investing in a Focus Cfo franchise. It is advisable to consult with a financial advisor to fully interpret these figures and their implications for your specific circumstances.