What was the total liabilities and shareholders' equity for Chocolate Bash as of December 31, 2022?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021 BALANCE SHEET
| 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 |
| TOTAL LIABILITIES |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the total liabilities and shareholders' equity as of December 31, 2022, was $80,489. This figure represents the sum of what Chocolate Bash owes to others (liabilities) and the value of the company belonging to its owners (shareholders' equity). It is a fundamental accounting equation where total assets equal total liabilities plus shareholders' equity.
Specifically, on December 31, 2022, Chocolate Bash had total liabilities of $33,979 and total shareholders' equity of $46,509. The liabilities consist of both current liabilities ($3,500) like deferred revenue and non-current liabilities ($30,479) such as deferred revenue. Shareholders' equity reflects the accumulated earnings and investments made by the owners.
For a prospective franchisee, this balance sheet information provides a snapshot of Chocolate Bash's financial health at a specific point in time. A healthy balance sheet generally indicates that the company has sufficient assets to cover its liabilities and a reasonable level of equity. However, it is essential to analyze these figures in conjunction with other financial statements, such as the income statement and cash flow statement, to gain a comprehensive understanding of the company's financial performance and stability. Reviewing these figures over several years, as presented in the FDD, can reveal trends and potential areas of concern or strength.