What was the cash and cash equivalents balance at the beginning of the year for Learningrx in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------|------|---------|---|------|----------| | Net Income (Loss) | | 7,181 | - | | (55,041) | | Retained Earnings, End of Year | $ | 773,206 | _ | $ | 766,025 |
LearningRx Franchise Corporation Statements of Cash Flows For the Years Ended September 30, 2023 and 2022
| 2023 | 2022 | ||
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Net income (loss) | $ | 7,181 | $ (55,041) |
| Depreciation | 898 | 898 | |
| Changes in assets and liabilities: | |||
| Accounts receivable, net | 3,437 | 65,400 | |
| Prepaid expenses | 1,635 | - | |
| Due from related parties | - | 100,000 | |
| Deferred income tax asset | 11,350 | 4,466 | |
| Accounts payable | 5,871 | (22,734) | |
| Liability for marketing and development | 14,328 | 39,180 | |
| Deferred franchise fee revenue | (28,000) | 28,000 | |
| Net Cash Provided by Operations | 16,700 | 160,169 | |
| Increase in Cash and Cash Equivalents |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the cash and cash equivalents balance at the beginning of the year 2023 was $534,941. This figure represents the amount of liquid assets Learningrx had available at the start of their fiscal year, which ends on September 30. This number is derived from the Learningrx Franchise Corporation's Statements of Cash Flows.
For a prospective franchisee, this number provides insight into the financial health and liquidity of Learningrx. A higher cash balance generally indicates a stronger financial position, which can be reassuring for those considering investing in the franchise. It suggests that Learningrx has sufficient resources to manage its short-term obligations and potentially invest in growth opportunities.
However, it's important to consider this figure in conjunction with other financial metrics and information provided in the FDD, such as revenues, expenses, and liabilities, to get a comprehensive understanding of Learningrx's financial performance and stability. Additionally, prospective franchisees should compare this cash balance with those of other similar franchises to benchmark Learningrx's financial position within the industry.