What was the change in Canopy Lawn Care's net income in 2021, as restated in the financial statements?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Previously Stated | Change | Restated | |
|---|---|---|---|
| Net Income | $ | $ | $ |
| 4,434,302 | 1,655,211 | 6,089,513 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the company's net income for 2022 was restated to account for changes in accounting policies. The table provides a comparison between the previously stated and restated net income figures, along with the change resulting from the restatement.
Specifically, the previously stated net income for 2022 was $4,434,302. After the restatement, the net income was adjusted to $6,089,513. This represents a change of $1,655,211 due to the adjustments made during the restatement process.
For a prospective Canopy Lawn Care franchisee, understanding these restatements is crucial. It highlights how changes in accounting policies can significantly impact the reported financial performance of the company. Reviewing the notes to the financial statements, particularly Note 10 referenced in the document, will provide additional context on the nature of these accounting policy changes and their implications for the company's financial reporting. This due diligence will enable a potential franchisee to make a more informed investment decision.