What was the net change in cash for Kitchen Solvers in 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | ||
| Increase (decrease) in cash: | |||||
| Cash flows from operating activities | |||||
| Net income | $ 464,580 | $ 210,640 | $ 232,257 | ||
| Adjustments to reconcile net income to net | |||||
| cash provided by operating activities: | |||||
| Depreciation | 10,880 | 6,555 | 1,585 | ||
| Noncash lease expense | 40,121 | 10,262 | - | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | 75,001 | 1,889 | ( 47,979) | ||
| Accounts receivable - related party | ( 174,152) | - | - | ||
| Contract assets | ( 61,597) | ( 107,296) | ( 194,671) | ||
| Advances receivable | - | 74,472 | 75,000 | ||
| Other receivable | - | 3,260 | ( 3,260) | ||
| Inventory | ( 14,536) | ( 14,106) | - | ||
| Prepaid expenses | 16 | ( 2,293) | - | ||
| Accounts payable | 31,571 | ( 38,816) | 55,390 | ||
| Accrued and other liabilities | 17,806 | - | - | ||
| Deferred revenue | 12,268 | 76,042 | - | ||
| Contract liabilities | 229,411 | 171,452 | 275,741 | ||
| Lease liabilities - operating | ( 39,479) | ( 10,529) | - | ||
| Net change in cash from operating activities | 591,890 | 381,532 | 394,063 | ||
| Cash flows from investing activities: | |||||
| Purchases of property and equipment | ( 53,517) | ( 73,253) | - | ||
| Net change in cash from investing activities | ( 53,517) | ( 73,253) | - | ||
| Cash flows from financing activities | |||||
| Note payable - Officer | 2,455 | ( 16,126) | 18,049 | ||
| Proceeds from long-term debt | - | 56,700 | - | ||
| Principal payments on long-term debt | ( 18,523) | ( 13,020) | - | ||
| Member distributions | ( 304,910) | ( 204,000) | ( 409,849) | ||
| Net change in cash from financing activities | ( 320,978) | ( 176,446) | ( 391,800) | ||
| Net change in cash | 217,395 | 131,833 | 2,263 | ||
| Cash, beginning of year | 192,541 | 60,708 | 58,445 | ||
| Cash, end of year | $ 409,936 | $ 192,541 | $ 60,708 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the net change in cash for the company in 2022 was $2,263. This figure represents the overall increase in cash the company experienced after accounting for all cash inflows and outflows during that year. This information is derived from the Statements of Cash Flows, which provides a summary of all the cash-related transactions that occurred within Kitchen Solvers during the specified period.
Specifically, the statement details cash flows from operating, investing, and financing activities. Operating activities include the day-to-day revenue-generating actions of the business. Investing activities include the purchase and sale of long-term assets. Financing activities involve how the company is funded, such as through debt and equity. The net change in cash is the sum of the cash flows from these three activities.
For a prospective franchisee, understanding the net change in cash can provide insights into the financial health and stability of Kitchen Solvers. A positive net change suggests that the company is generating more cash than it is using, which can be a sign of a healthy and growing business. Conversely, a negative net change might raise concerns about the company's ability to manage its cash flow effectively. However, it's important to consider these figures in the context of the company's overall financial performance and industry trends. A single year's data may not be fully representative, so reviewing several years of financial statements is advisable.