What was the (decrease) increase in other current liabilities 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 | 265,620 | 35,457 |
| (Decrease) increase in other current liabilities | 91,265 | 2,179 | 20,017 |
| (Decrease) increase in other long term liabilities | 191,431 | 105,432 | - |
| Net cash provided by operating activities | 1,672,923 | 1,157,852 | 1,102,997 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Purchase of assets | (18,522) | (34,769) | |
| Net cash used by investing activities | (18,522) | (34,769) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Members' contributions | 83,404 | 85,545 | 74,980 |
| Members' distributions | (919,714) | (1,339,352) | (740,138) |
| Net cash used by financing activities | (836,310) | (1,253,807) | (665,158) |
| Net change in cash and cash equivalents | 836,613 | (114,477) | 40 |
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the other current liabilities increased by $2,179 in 2023. This figure is derived from the consolidated statements of cash flows, which detail the changes in assets and liabilities during the specified period.
For a prospective franchisee, understanding the fluctuations in current liabilities is crucial for assessing the company's short-term financial health. An increase in other current liabilities could indicate a rise in short-term obligations such as deferred revenue, accrued expenses, or short-term debt. While a small increase may not be alarming, it is important to investigate the reasons behind the change to ensure it does not signal potential liquidity issues.
In the context of Focus Cfo, monitoring these liabilities helps in evaluating the company's operational efficiency and financial stability. Franchisees should pay attention to how these liabilities are managed, as they can impact the overall financial performance and sustainability of the franchise system. Reviewing these figures over several years, as presented in the document, provides a more comprehensive view of the company's financial trends and risk factors.
It is also worth noting that the independent auditor's report mentions a correction of an error related to other current liabilities in the 2023 financial statements. This correction suggests that the initially reported figures were understated, and the restated amounts should be considered when analyzing the company's financial performance. Franchisees should seek clarification on the nature and impact of these corrections to gain a clearer understanding of the company's financial history.