What was the (decrease) increase in other long term liabilities for Focus Cfo in 2024?
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 payab |
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the other long-term liabilities saw an increase of $191,431 in 2024. This figure is derived from the consolidated statements of cash flows, which provide a summary of the company's financial activities over the past three years. In 2023, the increase in other long-term liabilities was $105,432, while in 2022, there was no recorded value for this category.
For a prospective Focus Cfo franchisee, understanding these figures is crucial for assessing the company's financial stability and growth. An increase in long-term liabilities could indicate that Focus Cfo is taking on more debt or has new long-term obligations. While not inherently negative, it's important to evaluate the context. For example, the liabilities could be related to investments in expansion or new services, which could ultimately benefit franchisees.
It is important to note that the independent auditor's report mentions a correction of an error related to other long-term liabilities in 2023. This correction suggests that the initially reported figures were understated, and the financial statements have been restated to reflect the accurate amounts. Franchisees should inquire about the nature of this error and the reasons for the restatement to gain a clearer understanding of the company's financial reporting practices. Reviewing these trends in liabilities alongside revenue and profitability can provide a more complete picture of Focus Cfo's financial health.
Overall, while the FDD provides a snapshot of Focus Cfo's financial performance, prospective franchisees should conduct their own due diligence, including consulting with financial advisors, to fully understand the implications of these figures and make informed decisions about investing in a franchise.