What is the total liabilities amount 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 total liabilities to be $74,397. This figure is the sum of current liabilities, which total $9,000, and non-current liabilities, which total $65,397.
The current liabilities consist entirely of deferred revenue, while the non-current liabilities include deferred revenue of $6,000 and an amount due to a related party of $59,397. Deferred revenue typically represents payments Bombs Away has received for services or products that have not yet been delivered or rendered. The 'Due to Related Party' indicates an amount owed to an individual or entity related to Bombs Away, which could be a significant obligation.
In contrast, the balance sheet as of December 31, 2022, shows total liabilities as zero. This difference between the two years indicates a substantial change in Bombs Away's financial obligations. A prospective franchisee should investigate the reasons for this increase in liabilities to fully understand the company's financial health and stability.