What were the total current liabilities for Chocolate Bash as of December 31, 2021?
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 |
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, 2021, were $24,750. This figure represents the short-term financial obligations of Chocolate Bash Franchising LLC that were due within one year from that date.
Current liabilities are a crucial indicator of a company's financial health. They reflect obligations such as deferred revenue, which in Chocolate Bash's case, amounted to $24,750 in 2021. Deferred revenue typically represents payments received for services or goods that have not yet been delivered or rendered. For a prospective franchisee, understanding the nature and extent of current liabilities provides insight into the company's short-term financial obligations and its ability to meet them.
It is important to note that while the total current liabilities were $24,750, this amount only reflects the current portion of deferred revenue. The FDD also lists non-current liabilities, which include deferred revenue due beyond one year. As of December 31, 2021, Chocolate Bash's total non-current liabilities were $32,250. Therefore, the total deferred revenue was $57,000, which is the sum of current and non-current deferred revenue.
Prospective franchisees should consider these liabilities in the context of Chocolate Bash's overall financial position, including its assets and equity. A thorough review of the balance sheet, along with the profit and loss statement and statement of cash flows, will provide a more comprehensive understanding of the company's financial stability and its ability to support its franchisees.