What was the retained earnings (deficit) for Chocolate Bash as of December 31, 2023?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | 12/31/23 12/31/22 12/31/21 | ||
|---|---|---|---|
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | $ 21,639 | $ 59,295 | $ 104,922 |
| Accounts Receivable | 2,153 | 21,194 | - |
| TOTAL CURRENT ASSETS | 23,792 | 80,489 | 104,922 |
| NON-CURRENT ASSETS | |||
| Due To/From Related Party | 35,956 | - | - |
| TOTAL NON-CURRENT ASSETS | 35,956 | - | - |
| TOTAL ASSETS | 59,748 | 80,489 | 104,922 |
| LIABILITIES AND OWNER'S EQUITY | |||
| CURRENT LIABILITIES | |||
| Deferred Revenue, current portion | 7,146 | 3,500 | 24,750 |
| TOTAL CURRENT LIABILITIES | 7,146 | 3,500 | 24,750 |
| NON-CURRENT LIABILITIES | |||
| Deferred Revenue | 51,729 | 30,479 | 32,250 |
| TOTAL NON-CURRENT LIABILITIES | 51,729 | 30,479 | 32,250 |
| TOTAL LIABILITIES | 58,875 | 33,979 | 57,000 |
| OWNER'S EQUITY | |||
| Retained Earnings (Deficit) | (14,611) 17,822 | 9,114 | |
| Net Income (Loss) | 15,483 | 28,687 | 38,808 |
| TOTAL SHAREHOLDERS' EQUITY | 872 | 46,509 | 47,922 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, as of December 31, 2023, the company had retained earnings (deficit) of ($14,611) 17,822. This figure is part of the broader financial picture presented in the balance sheet, which also includes assets, liabilities, and overall equity.
Retained earnings represent the accumulated net income of Chocolate Bash that has been kept within the company rather than distributed as dividends. A deficit in retained earnings, indicated by the negative value, suggests that the company's accumulated losses and distributions have exceeded its accumulated profits up to that point in time. This is a critical metric for prospective franchisees to consider, as it provides insight into the financial stability and historical profitability of Chocolate Bash.
It's important to note that while retained earnings offer a snapshot of past financial performance, they do not guarantee future success. Factors such as market conditions, competition, and the effectiveness of Chocolate Bash's business model will all influence future profitability. Therefore, potential franchisees should carefully evaluate the retained earnings figure in conjunction with other financial data and market analysis to make an informed investment decision.