What was the net change in cash from investing activities for Kitchen Solvers in 2023?
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 from investing activities in 2023 was a decrease of $73,253. This figure reflects the cash flow resulting from the company's investments during that year.
Specifically, this decrease is attributed to purchases of property and equipment. For a prospective franchisee, this indicates that Kitchen Solvers was investing in its infrastructure and resources during 2023. These investments could be related to upgrading technology, purchasing new equipment, or expanding facilities.
Understanding the cash flow from investing activities helps potential franchisees assess how Kitchen Solvers manages its capital and invests in its future growth. A consistent investment in property and equipment can signal a commitment to maintaining and improving the quality of its operations and offerings.