What were the total current liabilities 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the balance sheet as of December 31, 2023, shows the company's financial position. Under the 'Current Liabilities' section, 'Deferred Revenue (current)' is listed as $9,000. The 'Total Current Liabilities' is also listed as $9,000.
This means that as of the end of 2023, Bombs Away had $9,000 in short-term obligations, which primarily consist of deferred revenue. Deferred revenue represents payments Bombs Away has received for services or products that have not yet been delivered or provided. This is a common liability for franchise companies, as they often collect initial franchise fees or other payments upfront before the franchisee commences operations.
For a prospective Bombs Away franchisee, this indicates the company's short-term financial obligations. Reviewing the balance sheet helps potential franchisees assess the financial stability and health of Bombs Away. It's important to note that this figure only represents the liabilities at a specific point in time and can fluctuate. Therefore, it's advisable to review the trend of liabilities over time and compare them with industry benchmarks to gain a more comprehensive understanding.