What is the total liabilities and shareholders' equity 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 total liabilities and shareholders' equity to be $5,515. This figure represents the sum of what Bombs Away owes to others (liabilities) and the value of the shareholders' stake in the company (equity). It indicates the financial position of the company at that specific point in time.
For a prospective Bombs Away franchisee, this number provides a snapshot of the company's financial health. A low total liabilities and shareholders' equity could indicate that the company is not heavily leveraged, but it could also mean that the company has not yet accumulated significant assets or equity. Conversely, a higher number could suggest a more established company with more assets, but also potentially more debt.
It's important to note that the balance sheet only provides a snapshot at a specific date. To gain a more complete understanding of Bombs Away's financial stability, a prospective franchisee should review the complete financial statements, including the income statement and statement of cash flows, and compare these figures to previous years and industry benchmarks. Additionally, it would be prudent to consult with a financial advisor to fully assess the implications of these financial figures.