What was the net cash provided by operations 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 net cash provided by operations in 2023 was $16,700. This figure represents the net increase in cash resulting from Learningrx's core business activities during that year. It's a key indicator of the company's financial health and its ability to generate cash from its operations.
Several factors contributed to this net cash flow. These include net income of $7,181, depreciation of $898, changes in accounts receivable ($3,437), prepaid expenses ($1,635), deferred income tax asset ($11,350), accounts payable ($5,871), liability for marketing and development ($14,328), and deferred franchise fee revenue ($-28,000). These individual line items reflect the various adjustments made to net income to arrive at the actual cash generated or used by Learningrx's operations.
For a prospective Learningrx franchisee, this information is valuable as it provides insight into the financial performance of the franchisor. A positive net cash flow from operations suggests that Learningrx is effectively managing its business and generating sufficient cash to cover its expenses and potentially reinvest in growth. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of Learningrx's financial stability and performance.
It is also important to note that the FDD includes financial statements audited by independent auditors, which adds credibility to the reported figures. These statements are prepared in accordance with accounting principles generally accepted in the United States of America, ensuring a degree of standardization and comparability. A prospective franchisee should review these statements carefully and consult with a financial advisor to assess the financial risks and opportunities associated with investing in a Learningrx franchise.