What was the net cash used by investing 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 | 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 net cash used by investing activities in 2022 was a negative $34,769. This indicates that Focus Cfo spent $34,769 more than it received from its investing activities during that year.
For a prospective franchisee, this figure provides insight into how Focus Cfo manages its investments. In 2022, the company's investing activities resulted in a net cash outflow, which could be due to the purchase of assets. Reviewing these figures over several years, as presented in the FDD, can reveal trends in Focus Cfo's investment strategies.
It's important to note that negative cash flow from investing activities isn't inherently negative. It often reflects strategic investments in the company's future growth. However, prospective franchisees should consider this information in conjunction with other financial data to assess the overall financial health and stability of Focus Cfo.