What was the total shareholders' equity for Chocolate Bash as of December 31, 2023?
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 |
| Balance, December 31, 2021 | $ (8,826) | $ 5 |
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, 2023, was $872. This figure represents the net worth of Chocolate Bash Franchising LLC at the end of the fiscal year, reflecting the accumulation of earnings and investments made by the owners, offset by any losses or distributions. It's a key indicator of the company's financial health and stability.
The statement of shareholders' equity details the changes in equity over the three-year period. The beginning balance for 2023 was $46,509. During the year, Chocolate Bash had a net income of $15,483, but also recorded equity distributions of $61,122. These changes resulted in a closing balance of $872 as of December 31, 2023.
For a prospective franchisee, this information is crucial for assessing the financial stability of Chocolate Bash. A positive shareholders' equity generally indicates a stronger financial position. However, it is important to consider the trend over time and the factors contributing to changes in equity, such as net income and equity distributions. Reviewing the complete financial statements and understanding the context behind these figures is essential for making an informed investment decision.