What was the net cash provided by operating activities for Itan in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
------|---------|------------------|--------------|------------------------|---------|--|---------|--|---------|--|----------|--------| | | Shares | Amount | capital | | capital | | capital | | capital | | capital | | earnings | equity | | Balance at December 31, 2021 | 1,500 | $ 50,000 | $ | 38,000 | $ 1,198,747 | $ 1,286,747 | | | | | | | | | | Net earnings | | | | i.e.i | 233,770 | 233,770 | | | | | | | | | | Balance at December 31, 2022 | 1,500 | 50,000 | | 38,000 | 1,432,517 | 1,520,517 | | | | | | | | | | Net earnings | | vā. | | = | 272,146 | 272,146 | | | | | | | | | | Balance at December 31, 2023 | 1,500 | $ 50,000 | $ | 38,000 | $ 1,704,663 | $ 1,792,663 | | | | | | | | |
| Page 7 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
| Net earnings | $ | 272,146 | $ | 233,770 |
| ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH | ||||
| PROVIDED/(USED) BY OPERATING ACTIVITIES | ||||
| Depreciation | 443 | 1,543 | ||
| Loss on disposal of property and equipment | 900 | |||
| Income from loan forgiv |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $497,884. This indicates the amount of cash Itan generated from its core business operations during that year. This figure is derived by adjusting net earnings to account for non-cash transactions and changes in working capital accounts.
For a prospective Itan franchisee, understanding the franchisor's cash flow from operations is crucial. A positive and substantial cash flow, such as the $497,884 reported for 2023, suggests that Itan is effectively managing its revenues and expenses. This can be a sign of financial stability and efficient business practices, which are important considerations when evaluating a franchise opportunity.
It's also useful to compare this figure with the previous year. In 2022, Itan's net cash provided by operating activities was $152,716. The significant increase from $152,716 in 2022 to $497,884 in 2023 suggests a substantial improvement in Itan's operational efficiency and profitability. A potential franchisee should investigate the reasons behind this increase to determine if it is sustainable and indicative of future performance.