How much cash did Learningrx pay for taxes in 2022?
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 | |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the cash paid for taxes in 2022 was $744. This information is derived from the statement of cash flows, which provides a summary of all cash inflows and outflows for Learningrx during the specified period. This figure is part of the supplementary information included in the financial statements.
For a prospective Learningrx franchisee, understanding the franchisor's cash flow management and tax payments can offer insights into the financial health and stability of the company. While $744 may seem like a small amount, it is important to consider this figure in the context of Learningrx's overall financial performance and tax strategy.
Franchisees should note that the current taxes are computed using the cash basis of accounting. The current taxable net income was $25,496 for the year ended September 30, 2022. Additionally, Learningrx had federal net operating losses (NOL) to be carried to future years of approximately $1,158,000 for the year ended September 30, 2022. These factors can influence the amount of cash paid for taxes in a given year.
It is advisable for potential franchisees to review the complete audited financial statements and consult with a financial advisor to fully understand the tax implications and financial performance of Learningrx.