Where are the Company's financial assets and liabilities reported for Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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BOMBS AWAY FRANCHISING LLC BALANCE SHEET DECEMBER 31, 2023
| | ASSETS | | |----------------------------|--------------------------------------------|----------| | CURRENT ASSETS | | | | Cash and Cash Equivalents | | $ 5,000 | | Accounts Receivable | | 515 | | | TOTAL CURRENT ASSETS | 5,515 | | NON-CURRENT ASSETS | | | | | TOTAL NON-CURRENT ASSETS | - | | | TOTAL ASSETS LIABILITIES AND OWNER'S EQUITY | 5,515 | | CURRENT LIABILITIES | | | | Deferred Revenue (current) | | 9,000 | | | TOTAL CURRENT LIABILITIES | 9,000 | | NON-CURRENT LIABILITIES | | | | Deferred Revenue | | 6,000 | | Due to Related Party | | 59,397 | | | TOTAL NON-CURRENT LIABILITIES | 65,397 | | | TOTAL LIABILITIES | 74,397 | | OWNER'S EQUITY | | | | Retained Earnings | | (41,721) | | Net Income (Loss) | | (27,161) | | | TOTAL SHAREHOLDERS' EQUITY | (68,882) | | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,515 |
BOMBS AWAY FRANCHISING LLC STATEMENT OF CASHFLOWS FOR THE YEAR ENDED DECEMBER 31, 2023
| Net Income | $ (27,161) |
|---|---|
| Non-Cash Adjustments | |
| Changes in Current Assets | (515) |
| Changes in Deferred Revenue | 15,000 |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (12,676) |
| INVESTING ACTIVITIES | |
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - |
| FINANCING ACTIVITIES | |
| Owner's Contribution | (91,721) |
| Due to Related Party | 59,397 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (32,324) |
| NET INCREASE (DECREASE) IN CASH | (45,001) |
| CASH AT BEGINNING OF PERIOD | 50,000 |
| CASH AT END OF PERIOD | $ 5,000 |
BOMBS AWAY FRANCHISING LLC STATEMENT OF SHAREHOLDERS' EQUITY DECEMBER 31, 2023
| Balance | Changes | Total | |
|---|---|---|---|
| Balance, December 31, 2022 | $ 50,000 | $ - | $ 50,000 |
| Net Income For The Period Ended December 31, 2023 | - | (27,161) | (27,161) |
| Equity Contributions (Distributions) | - | (91,72 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the company's financial assets and liabilities are detailed in the Balance Sheets within Item 21. The Balance Sheet as of December 31, 2023, shows current assets of $50,000, all in cash and cash equivalents. There are no non-current assets listed. Liabilities are reported as zero, with owner's equity, including retained earnings, also at $50,000.
The Balance Sheet as of December 31, 2022, presents a different financial picture. Current assets totaled $5,515, including $5,000 in cash and cash equivalents and $515 in accounts receivable. There were no non-current assets. Current liabilities totaled $9,000 in deferred revenue, while non-current liabilities included $6,000 in deferred revenue and $59,397 due to a related party, bringing total liabilities to $74,397. The total shareholders' equity was reported as negative $68,882, which includes retained earnings of negative $41,721 and a net loss of negative $27,161.
These balance sheets provide a snapshot of Bombs Away's financial position at the end of 2022 and 2023. A prospective franchisee can review these statements to understand the company's assets, liabilities, and equity, which can help in assessing the financial stability and performance of the franchisor. It is important to note the significant changes between the two years, such as the increase in cash and the shift from negative to positive equity.
It is also important to note that the financial statements are audited by an independent accountant, and their report is included. This report expresses an opinion on the fairness of the presentation of Bombs Away's financial position in accordance with accounting principles generally accepted in the United States of America.