What was the total amount of shareholders' equity for Chocolate Bash as of 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 total shareholders' equity as of December 31, 2021, was $47,922. This figure represents the sum of the opening equity balance, net income for the period ending December 31, 2021, and equity contributions.
Specifically, the opening equity balance was a deficit of $(8,826). During the year ending December 31, 2021, Chocolate Bash generated a net income of $38,808 and received equity contributions of $17,940. These positive changes resulted in the total shareholders' equity of $47,922 at the end of the year.
It is important for a prospective franchisee to review these figures to understand the financial health and equity position of Chocolate Bash. Analyzing the changes in equity over the three years presented (2021, 2022, and 2023) can provide insights into the company's profitability, capital management, and overall financial stability. This information, combined with other financial statements and disclosures in the FDD, can help potential franchisees make an informed investment decision.