What was the net cash provided by operating activities for Hyper Kidz in 2023?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| 13,867 | | 13,867 |
| Net income | | 21,106 | | - | | - | | BALANCE, DECEMBER 31, 2023 | $ | (62,130) | $ | (163,052) | $ | (298,580) |
BOOMERANG FRANCHISE, LLC STATEMENTS OF CASH FLOWS
| YEARS ENDED DECEMBER 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net income) | $ | 21,106 | $ | 52,292 | $ | 46,173 |
| Adjustments to reconcile net income to net | ||||||
| cash provided by operating activities: | ||||||
| Recognition of non-refundable deferred franchise sales | (14,063) | (4,279) | (3,950) | |||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | (2,149) | (18,006) | ||||
| Accounts payable and accrued expense | 2,932 | 2,993 | 820 | |||
| Royalties collected in advance | - | (36,612) | 36,612 | |||
| Non-refundable deferred franchise fees | 128,000 | 39,500 | ||||
| Net cash provided by operating activities | 135,826 | 35,888 | 79,655 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from notes payable | - | - | 79,000 | |||
| Advances to affiliates, net | 13,867 | 1,468 | (163,377) | |||
| Member contributions | - | - | 1,800 | |||
| Member distributions | (138,866) | (30,000) | - | |||
| Net cash (used) by financing activities | (124,999) | (28,532) | (82,577) | |||
| NET INCREASE (DECREASE) IN CASH | 10,827 | 7,356 | (2,922) | |||
| CASH, BEGIN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $135,826. This indicates the amount of cash the company generated from its core business operations during that year. This figure is derived by adjusting net income to account for non-cash transactions and changes in working capital accounts.
For a prospective Hyper Kidz franchisee, understanding the net cash provided by operating activities is crucial as it reflects the financial health and sustainability of the franchise system. A positive and growing number suggests that the company is effectively generating cash from its operations, which can be reinvested into the business or distributed to its owners. This can be a key indicator of the franchise's profitability and efficiency in managing its resources.
In comparison, the net cash provided by operating activities for Hyper Kidz in 2022 was $35,888 and in 2021 was $79,655. The increase in net cash provided by operating activities from 2022 to 2023 indicates a positive trend in the company's financial performance. A potential franchisee should investigate the reasons for these fluctuations to better understand the factors influencing the company's cash flow.