What was the beginning balance for Chocolate Bash for the period ending December 31, 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 accounting period. The statement of shareholder's equity outlines the changes in equity throughout the year, including net income and any contributions or distributions.
For the period ending December 31, 2021, Chocolate Bash's net income was $38,808, and equity contributions totaled $17,940. These positive changes, combined with the beginning balance, resulted in a balance of $47,922 as of December 31, 2021.
Understanding the statement of shareholder's equity is crucial for prospective franchisees as it provides insights into the financial stability and performance of Chocolate Bash. Reviewing these figures over multiple years, as presented in the FDD, can help potential franchisees assess the franchisor's financial health and make informed decisions.