What is the retained earnings amount for Cd One Price Cleaners as of December 29, 2023?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
00,000 | | | 2,305,232 | 2,000,000 | | | 3,326,113 | 3,194,100 | | | 219,513 | (342,270) | | | $ 3,545,626 | $ 2,851,830 | | | | | |
See accompanying notes.
Cleaners Depot Franchise, LLC Statement of Members' Equity
| Members' equity at December 31, 2021 | $ 390,846 |
|---|---|
| Capital contributed | - |
| Capital withdrawals | (1,005,000) |
| Net income, as re |
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the member's equity as of December 29, 2023, was $219,513. This figure represents the cumulative net income and other capital transactions, reflecting the financial position of the company at the end of its fiscal year. It is important to note that the company's fiscal year ends on the last Friday in December.
To arrive at this final equity figure for December 29, 2023, several factors were considered. The member's equity at December 31, 2021, was $390,846. There were no capital contributions, but capital withdrawals amounted to ($1,005,000). The net income, as restated, was $271,884, resulting in a member's equity at December 30, 2022, of ($342,270). Subsequently, capital contributions of $185,944 were made, while capital withdrawals totaled ($999,900). The net income for the period was $1,375,739.
For a prospective franchisee, understanding the equity and retained earnings is crucial as it provides insight into the financial stability and profitability of Cd One Price Cleaners. A positive and growing equity balance typically indicates a healthy and expanding business, while fluctuations may warrant further investigation to understand the underlying causes. Reviewing these figures in the context of capital contributions and withdrawals, as well as net income, offers a more comprehensive view of the company's financial management and performance.