What was the amount of City Publications' retained earnings as of December 31, 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ntial doubt about CITY PUBLICATIONS FRANCHISE GROUP, INC.'s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado April 20, 2025
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED BALANCE SHEETS
| AS OF DECEMBER 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS: | |||
| CURRENT ASSETS | |||
| Cash and equivalents | $ 469,911 | $ 34,370 | |
| Accounts receivable | 6,166 | 10,184 | |
| TOTAL CURRENT ASSETS | 476,077 | 44,554 | |
| NON-CURRENT ASSETS | |||
| Property and equipment | 2,179 | 3,000 | |
| Other assets | 8,362 | 8,362 | |
| TOTAL ASSETS | $ 486,618 | $ 55,916 | |
| LIABILITIES AND SHAREHOLDERS' (DEFICIT): | |||
| CURRENT LIABILITIES | |||
| Accounts payable | $ 478,790 | $ 84,847 | |
| Non-refundable deferred franchise fees, current | 29,393 | 22,373 | |
| TOTAL CURRENT LIABILITIES | 508,183 | 107,220 | |
| NON-CURRENT LIABILITIES | |||
| Non-refundable deferred franchise fees | 52,433 | 34,306 | |
| TOTAL LIABILITIES | 560,616 | 141,526 | |
| SHAREHOLDERS' (DEFICIT) | |||
| Common stock, $1 par value, 100,000 shares authorized | |||
| 1,000 shares issued and outstanding | 1,000 | 1,000 | |
| Additional paid-in capital | 17,000 | 17,000 | |
| Retained earnings | 1,902,107 | 1,745,483 | |
| Due |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company's retained earnings as of December 31, 2023, were $1,745,483. This figure is part of the broader financial statements that include assets, liabilities, and shareholders' equity. Retained earnings represent the accumulated net income of City Publications that has been kept within the company rather than distributed as dividends.
For a prospective franchisee, retained earnings can be an indicator of the financial health and stability of City Publications. A higher retained earnings balance generally suggests that the company has been profitable and has managed its finances effectively. However, it's important to consider this figure in conjunction with other financial metrics and information provided in the FDD, such as liabilities and cash flow, to get a comprehensive understanding of the company's financial position.
It is also important to note that the financial statements include the combined results of City Publications and its affiliate, City Publications Services, Inc. Additionally, the company's financial statements are prepared using estimates and assumptions made by management, and actual results could differ from those estimates. Therefore, prospective franchisees should carefully review the entire financial section of the FDD and consult with a financial advisor to assess the financial risks and opportunities associated with investing in a City Publications franchise.