What was the total amount of current liabilities 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the total current liabilities as of December 31, 2023, were $7,146. This figure represents the sum of obligations due within a year, specifically 'Deferred Revenue, current portion.'
Deferred revenue represents payments Chocolate Bash has received for goods or services that have not yet been delivered or rendered. The current portion indicates the amount of this revenue expected to be recognized within the next year. For a prospective franchisee, a low current liabilities figure could suggest that Chocolate Bash has limited short-term obligations.
It is important to note that while a lower liability amount might seem favorable, franchisees should consider this in conjunction with other financial metrics. Understanding the composition and trends in liabilities, alongside assets and equity, provides a more comprehensive view of Chocolate Bash's financial health. Reviewing the complete financial statements and seeking professional financial advice is recommended for a thorough assessment.