What was the net change in cash for Kitchen Solvers in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
1 | 0 | | TN | 0 | 1 | 0 | | MN | 0 | 1 | 0 | | TOTAL | 0 | 3 | 0 |
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 c |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the net change in cash for the company in 2024 was $217,395. This figure represents the overall increase in Kitchen Solvers' cash balance after accounting for all cash inflows and outflows during the year. This increase reflects the net effect of cash flows from operating, investing, and financing activities.
Specifically, the FDD details the various components contributing to this net change. Kitchen Solvers experienced a $591,890 net change in cash from operating activities, which includes net income adjusted for non-cash items like depreciation and changes in working capital accounts. Investing activities, primarily purchases of property and equipment, resulted in a decrease of $53,517. Financing activities, including member distributions and principal payments on long-term debt, led to a decrease of $320,978.
For a prospective franchisee, this information provides insight into Kitchen Solvers' financial health and cash management. A positive net change in cash suggests that the company is generating more cash than it is using, which can be a sign of stability and growth potential. Reviewing the individual cash flow components offers a more detailed understanding of how Kitchen Solvers generates and uses its cash, which can inform a franchisee's assessment of the company's financial performance and future prospects.