What was the net cash provided by operating activities for Focus Cfo in 2022?
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, the net cash provided by operating activities in 2022 was $1,102,997. This reflects the cash generated from the company's core business operations during that year. Understanding this figure is crucial for potential franchisees as it provides insight into the financial health and stability of Focus Cfo. A positive cash flow from operations indicates that the company is effectively generating cash from its business activities, which can be a good sign for prospective franchisees.
Specifically, the net cash provided by operating activities is derived from the net income, which was $990,076 in 2022, adjusted for non-cash items such as depreciation and amortization ($1,667), and changes in assets and liabilities. These adjustments include changes in accounts receivables ($56,245), other current assets ($-24,311), accounts payable ($23,846), accrued compensation ($35,457), and other current liabilities ($20,017). These figures are important because they show how Focus Cfo manages its working capital and how efficiently it converts its earnings into cash.
For a prospective franchisee, this information is valuable in assessing the overall financial performance and sustainability of Focus Cfo. It's important to consider these figures in conjunction with other financial metrics and trends to gain a comprehensive understanding of the company's financial position. While a single year's performance is informative, reviewing several years of data, as presented in the FDD, provides a more complete picture of Focus Cfo's financial health and its ability to support its franchisees.