What was the total amount of Buona's current liabilities in 2023?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
any's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
R.J. Augustine & Associates, Ltd. CERTIFIED PUBLIC ACCOUNTANTS
April 14, 2025
CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DECEMBER 29, 2024 AND DECEMBER 31, 2023 BALANCE SHEETS
ASSETS
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS Cash Prepaid Insurance | $ 99,546 6,580 | $ 251,155 8,075 |
| TOTAL CURRENT ASSETS | 106,126 | 259,230 |
| TOTAL ASSETS | $ 106,126 | $ 259,230 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| 2024 | 2023 | |
| CURRENT LIABILITIES Current Portion of Deferred Revenue Accounts Payable Accru |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the company's total current liabilities in 2023 were $169,552. Current liabilities represent Buona's short-term financial obligations, such as accounts payable, accrued expenses, and deferred revenue due within one year. These liabilities are a key indicator of the company's short-term financial health and its ability to meet its immediate obligations.
The FDD also lists the specific components contributing to the total current liabilities. These include $11,000 in the current portion of deferred revenue, $6,192 in accounts payable, $360 in accrued accounts payable, $122,000 due to affiliates, and $30,000 in deposits for training fees. Monitoring these individual liability accounts can provide insights into where Buona's immediate financial obligations lie.
Prospective franchisees should pay close attention to the trend of current liabilities over time. Comparing the 2023 figure of $169,552 to the 2024 figure of $107,148 and the 2022 figure of $46,024 reveals fluctuations in Buona's short-term obligations. Understanding the reasons behind these changes, such as shifts in deferred revenue or affiliate obligations, is crucial for assessing the financial stability of Buona.