What were the total 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 company's total current liabilities as of December 31, 2023, were $7,146. This figure represents the sum of obligations due within one year, which for Chocolate Bash consisted of deferred revenue, current portion.
For a prospective franchisee, understanding the franchisor's liabilities is crucial. Current liabilities indicate the obligations Chocolate Bash needs to settle in the near term. A high level of current liabilities relative to current assets could indicate liquidity issues, although in this case the amount appears modest.
It is important to note that this figure is just a snapshot in time. Franchisees should review the complete financial statements, including the balance sheets for previous years (2022 and 2021 are provided), the income statement, and the statement of cash flows, to understand the overall financial health and trends of Chocolate Bash. Additionally, prospective franchisees should consult with a financial advisor to fully assess the implications of these financial statements.