What was the equity balance for Chocolate Bash as of December 31, 2023?
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 |
| Balance, December 31, 2021 | $ (8,826) | $ 5 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the equity balance as of December 31, 2023, was $872. The statement of shareholder's equity outlines the changes in equity over the financial years.
The equity balance is calculated from an opening balance of $46,509. During the period ending December 31, 2023, Chocolate Bash had a net income of $15,483. However, equity contributions and distributions resulted in a reduction of $61,122.
These figures provide a snapshot of Chocolate Bash's financial standing and how it has changed over time. Reviewing the equity statement helps potential franchisees understand how profits, owner investments, and distributions impact the overall equity of the company. This is a standard financial statement that is audited by an independent accountant.