What was the amount of the accumulated other comprehensive income for Aunt Millies Bakeries as of September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
in other comprehensive income (loss) - Effective Portion | (281,013) | 307,182 | | Gain recognized in net income - Ineffective portion | 177,184 | - |
NOTE 14 - RELATED PARTY TRANSACTIONS
The Company has subordinated debt through stockholders and has various leases with related parties. Refer to Note 5 and Note 6 for further information of the related party debt and lease transactions, respectively.
NOTE 15 - STOCKHOLDERS' EQUITY
Changes in stockholders' equity for the years ended September 30, 2023 and 2022 is as follows:
| Total Equity | $ 11,736,622 (5,256,940) | (458,749) | 307,182 (9,684) | 6,318,431 | 14,199,697 | (281,013) (4,946,915) | $ 15,846,911 | |
|---|---|---|---|---|---|---|---|---|
| Retained | (Accumulated Deficit) | 2,515,210 (5,256,940) | • | _ | (2,751,414) | 14, 199,097 | (4,946,915) | $ 6,501,368 |
| Earnings | (9,684) | |||||||
| Accumulated | prehensive | 993,393 | (458,749) | 307,182 | 841,826 | 556,711 | (281,013) | $ 1,117,524 |
| Other Com- | Income | |||||||
| Contributed Capital | 8,070,989 | • | 8,070,989 | , , | $ 8,070,989 | |||
| ting | Amount | 141,327 | ' | 1 1 | 141,327 | $ 141,327 | ||
| Stock | ||||||||
| Non-voting | Number | 3,423,254 | a | 1 1 | 3,423,254 | 3,423,254 | ||
| Common Stock | of |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the balance of accumulated other comprehensive income as of September 30, 2023, was $1,117,524. This figure represents the total accumulated unrealized gains and losses on available-for-sale securities and changes in benefit plans, which are excluded from the company's earnings and reported separately.
For a prospective Aunt Millies Bakeries franchisee, understanding this figure is crucial as it provides insight into the company's financial health and stability. Accumulated other comprehensive income can impact the overall equity of the company, which in turn can affect its ability to invest in growth opportunities or weather economic downturns. A positive balance, as in this case, suggests that the company has unrealized gains that could potentially be realized in the future, adding to its financial strength.
It's important to note that this figure is subject to change based on market conditions and other factors that can affect the value of the company's investments and benefit plans. Franchisees should monitor these figures over time to assess the ongoing financial health of Aunt Millies Bakeries. Additionally, prospective franchisees may want to inquire about the specific types of marketable securities and benefit plans that contribute to this accumulated income, to better understand the risks and opportunities associated with them.
In the franchise industry, it is common for franchisors to have various components of other comprehensive income, especially if they have significant investments or complex benefit plans. However, the specific amounts and composition can vary widely depending on the size and nature of the business. Therefore, it is essential for potential franchisees to carefully review the franchisor's financial statements and seek professional advice to fully understand the implications of these figures.