What was the net cash used by investing activities for Itan in 2022?
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 forgiveness | :- | (74,517) | ||
| Changes in operating assets and liabilities: | 1// | |||
| Accounts receivable | 4,540 | (7,924) | ||
| Due from related parties | 1= | 1,972 | ||
| Prepaid expenses | 74,586 | 24,122 | ||
| Prepaid taxes | 5,087 | (5,087) | ||
| Income tax receivable | - | 35,755 | ||
| Deferred tax asset | (32,366) | (4,661) | ||
| Accounts payable | 2,973 | (578) | ||
| Accrued liabilities | 16,196 | (26,670) | ||
| Accrued taxes | 44,709 | (57,673) | ||
| Contract liabilities | 115,000 | = | ||
| Deferred tax liability | (5,430) | 31,764 | ||
| 225,738 | (81,054) | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the net cash used by investing activities in 2022 was ($1,400,000). This figure indicates the total cash outflow resulting from Itan's investments during that year. These activities can include the purchase of property, equipment, or other assets necessary for the company's operations and future growth.
For a prospective Itan franchisee, this information provides insight into how the company manages its capital and invests in its infrastructure. A significant cash outflow in investing activities could suggest that Itan is expanding or upgrading its resources, which may have long-term benefits for franchisees. However, it's essential to consider this figure in conjunction with other financial data to understand the overall financial health and stability of the company.
It is also important to note that in 2023, Itan's net cash used by investing activities was $(167,063). The large difference between the 2022 and 2023 values could be due to a large one-time investment made in 2022. A prospective franchisee should inquire about the nature of these investments to understand their potential impact on the franchise system.