What were the total liabilities and shareholders' equity for Chocolate Bash as of December 31, 2023?
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, 2023, was $59,748. The total liabilities were $58,875, and the total shareholders' equity was $872.
It's important for a prospective franchisee to understand the components of liabilities and equity. Liabilities represent Chocolate Bash's obligations to others, while equity represents the owners' stake in the company. A high level of liabilities compared to equity could indicate higher financial risk.
The balance sheet provides a snapshot of Chocolate Bash's financial position at a specific point in time. Reviewing the balance sheets from previous years (2022 and 2021 are also provided) can reveal trends in the company's financial health. A potential franchisee should consult with a financial advisor to fully understand the implications of these figures.
Understanding the liabilities and equity is crucial for assessing the financial stability and solvency of Chocolate Bash. This information, combined with other financial statements and due diligence, can help a prospective franchisee make an informed decision.