What was the net increase/(decrease) in cash 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 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 increase in cash for the company in 2023 was $330,821. This figure represents the overall change in Itan's cash position during the year, taking into account all cash inflows (increases) and cash outflows (decreases) from its operating, investing, and financing activities. This indicates that Itan experienced a positive cash flow during the year.
Specifically, the document details the cash flows from operating activities, investing activities, and the resulting net increase or decrease in cash. In 2023, Itan's cash flows provided by operating activities amounted to $497,884. Cash flows used by investing activities totaled ($167,063). The net increase/(decrease) in cash is calculated by combining these figures, resulting in the $330,821 increase.
For a prospective franchisee, this information is useful for assessing the financial health and stability of Itan. A positive net increase in cash suggests that the company is generating more cash than it is using, which can be a sign of a healthy and sustainable business model. However, it is important to consider the specific factors driving these cash flows, such as the company's profitability, investment activities, and financing decisions, to gain a more complete understanding of its financial performance.