What was the net cash provided by operations for Learningrx in 2024?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
218,958 | 220,053 | | | Net Other Noncurrent Assets | 377,410 | 375,880 | | | Total Assets | $ 1,433,773 | | $ 1,193,151 |
LearningRx Franchise Corporation Statements of Cash Flows For the Years Ended September 30, 2024 and 2023
| 2024 | 2023 | ||
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Net income | $ | 169,308 | $ 7,181 |
| Depreciation | 898 | 898 | |
| Changes in assets and liabilities: | |||
| Accounts receivable, net | (6,717) | 3,437 | |
| Prepaid expenses | (1,806) | 1,635 | |
| Deferred income tax asset | 240 | 11,350 | |
| Accounts payable | 35,427 | 5,871 | |
| Liability for marketing and development | 36,982 | 14,328 | |
| Deferred franchise fee revenue | - | (28,000) | |
| Right-of-use asset | 1,096 | (220,053) | |
| Lease obligations | (1,096) | 220,053 | |
| Net Cash Provided by Operations | 234,332 | 16,700 | |
| Increase in Cash and Cash Equivalents | 234,332 |
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 2024 was $234,332. This figure represents the cash generated from Learningrx's normal business activities during the fiscal year. It's a key indicator of the company's financial health and its ability to fund its operations and growth.
In addition to the net cash provided by operations, the FDD provides a breakdown of the various factors contributing to this figure. These include net income ($169,308), depreciation ($898), and changes in assets and liabilities such as accounts receivable (($6,717)), prepaid expenses (($1,806)), deferred income tax asset ($240), accounts payable ($35,427), liability for marketing and development ($36,982), right-of-use asset ($1,096), and lease obligations (($1,096)). These adjustments reflect the non-cash items and changes in working capital that impact the company's cash flow from operations.
For a prospective Learningrx franchisee, understanding the net cash provided by operations is crucial. It offers insight into the financial stability of the franchisor and its ability to support its franchisees. A positive and growing net cash flow from operations suggests that Learningrx is generating sufficient cash to cover its expenses, invest in its business, and potentially provide support to its franchisees. Conversely, a declining or negative net cash flow could raise concerns about the franchisor's financial health and its ability to meet its obligations.