What was the beginning balance for Chocolate Bash in 2021?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
F DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021
| Opening Equity Balance | Yearly Changes | Total | |
|---|---|---|---|
| Beginning Balance | $ (8,826) $ | - | $ (8,826) |
| Net Income for the period ending December 31, 2021 | - | 38,808 | 38,808 |
| Equity Contributions (Distributions) | - | 17,940 | 17,940 |
| Ba |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the beginning balance for the period ending December 31, 2021, was a deficit of $8,826. This figure represents the company's equity balance at the start of the 2021 fiscal year before any income, contributions, or distributions were accounted for during that year.
Throughout 2021, Chocolate Bash experienced a net income of $38,808 and received equity contributions of $17,940. These positive changes, when combined with the beginning balance, resulted in a balance of $47,922 as of December 31, 2021.
Understanding the beginning balance and the factors that influenced the equity changes during the year provides insight into the financial performance and stability of Chocolate Bash. A prospective franchisee can use this information to assess the company's financial trajectory and make informed decisions about investing in a franchise.