What were the total non-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, is not available because Bombs Away has not been in business for three years or more. However, the balance sheet as of December 31, 2022, shows the total non-current liabilities.
As of December 31, 2022, Bombs Away had total non-current liabilities of $65,397. This amount is composed of deferred revenue of $6,000 and an amount due to a related party of $59,397.
Prospective franchisees should understand the nature of these liabilities. Deferred revenue typically represents payments Bombs Away has received for services or goods that will be provided in the future. The 'Due to Related Party' liability suggests Bombs Away owes money to an affiliated entity or individual, which could impact the company's financial stability and operations. It is important to ask Bombs Away about the details of this related-party transaction and how it might affect the franchise's financial health.