What was the net change in cash and cash equivalents 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 change in cash and cash equivalents for the company in 2022 was $403,070. This figure represents the overall increase or decrease in Focus Cfo's cash holdings and liquid assets during that year. This is an important indicator of the company's financial health and liquidity.
For a prospective franchisee, this number provides insight into how Focus Cfo manages its cash flow. A positive net change suggests that the company is generating more cash than it is spending, which can be a sign of stability and growth potential. Conversely, a negative net change might raise concerns about the company's ability to meet its financial obligations.
It's also useful to compare this figure with the net changes in cash and cash equivalents for other years, such as 2023 when it was ($114,477) and 2024 when it was $836,613, to identify any trends or fluctuations in Focus Cfo's cash management. Analyzing these trends can help a potential franchisee assess the financial risks and opportunities associated with investing in a Focus Cfo franchise. Additionally, it would be prudent to investigate the reasons behind any significant changes in cash flow from year to year to gain a deeper understanding of the company's financial performance.