What was the net increase (decrease) in cash 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 increase in cash for the company in 2023 was $10,827. This figure represents the overall change in the company's cash position during the year, taking into account all cash inflows (increases) and cash outflows (decreases) from operating, financing, and investing activities.
For a prospective Hyper Kidz franchisee, this information provides insight into the company's financial performance and its ability to manage its cash flow. A positive net increase in cash suggests that the company is generating more cash than it is using, which can be a sign of financial stability and growth potential. Conversely, a negative net increase in cash could indicate that the company is facing financial challenges or is investing heavily in expansion.
It's important to note that this figure is just one piece of the financial puzzle and should be considered in conjunction with other financial data, such as revenue, expenses, and debt levels, to get a comprehensive understanding of the company's financial health. Additionally, prospective franchisees should compare Hyper Kidz's cash flow performance to that of other franchises in the same industry to assess its relative performance.