What was the net cash provided by Zoomin Groomin's operating activities in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
-----| | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (482,370) | | Equity at December 31, 2022 | $ (693,256) | | Equity at January 1, 2023 | $ (693,256) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,117,726) | | Equity at December 31, 2023 | $ (1,810,982) | | Equity at January 1, 2024 | $ (1,810,982) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,825,281) | | Equity at December 31, 2024 | $ (3,636,263) |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | |||
| Net Income (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciatio |
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2024 was $2,337,664. This indicates the amount of cash Zoomin Groomin generated from its core business operations during that year. Analyzing cash flow from operating activities is crucial for assessing a company's financial health because it reveals whether the company can generate enough cash to maintain and grow its operations.
In addition to net cash flow, the FDD provides a breakdown of factors contributing to this figure. Net loss for 2024 was $(1,825,281). This loss was offset by adjustments such as depreciation and amortization ($6,000), changes in inventory ($7,308), accounts receivable ($(173,640)), prepaid expenses ($8), accounts payable ($(71,077)), unearned revenue ($60,000), and deferred revenue ($4,334,346). These adjustments reconcile the net loss to the actual cash provided by operating activities.
For a prospective franchisee, understanding these cash flow dynamics is essential. It offers insight into how Zoomin Groomin manages its finances and sustains its operations. A positive net cash flow from operating activities, like the $2,337,664 reported for 2024, generally suggests that the company is financially stable and capable of supporting its franchisees. However, it's important to consider the factors contributing to this cash flow, such as the significant increase in deferred revenue, to gain a comprehensive understanding of the company's financial situation.