How much cash did Hyper Kidz pay for interest in 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
68 | | 1,468 | | Net income | | 52,292 | | | | - | | BALANCE, DECEMBER 31, 2022 | $ | 55,630 | $ | (176,919) | $ | (173,581) |
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 BOOMERANG FRANCHISE, LLC STATEMENTS OF CASH FLOWS
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income) | $ 52,292 | $ 46,173 | $ 110,241 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities: | |||
| Recognition of non-refundable deferred franchise sales | (4,279) | (3,950) | (6,913) |
| Changes in assets and liabilities: | |||
| Accounts receivable | (18,006) | ||
| Accrued expense | 2,993 | 820 | - |
| Royalties collected in advance | (36,612) | 36,612 | - |
| Non-refundable deferred franchise fees | 39,500 | ||
| Net cash provided by operating activities | 35,888 | 79,655 | 103,328 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from notes payable | - | 79,000 | - |
| Advances to affiliates, net | 1,468 | (163,377) | - |
| Member contributions | - | 1,800 | - |
| Member distributions | (30,000) | - | (100,386) |
| Net cash (used) by financing activities | (28,532) | (82,577) | (100,386) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the cash paid for interest in 2021 was $0. This information is found within the supplemental disclosures section of the financial statements. The FDD provides a detailed overview of the company's cash flow activities, including operating, financing, and investing activities, as well as supplemental disclosures like cash paid for interest and taxes.
For a prospective Hyper Kidz franchisee, this indicates that the company did not have any interest expenses that required cash payments during that year. This could be due to various factors, such as having no debt or having interest obligations that were not yet due for payment.
It is important to note that this figure only reflects cash payments for interest and does not necessarily represent the total interest expense incurred by Hyper Kidz in 2021, as some interest expenses may have been accrued but not yet paid in cash. Reviewing the full financial statements and notes would provide a more comprehensive understanding of the company's interest expense and debt obligations.