What was the Retained Earnings balance for City Publications as of December 31, 2024?
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 balance as of December 31, 2024, was $1,902,107. This figure is a component of the total shareholders' deficit, which was reported as $(73,998). The balance sheet also shows the Retained Earnings as of December 31, 2023, was $1,745,483.
Retained earnings represent the cumulative net income of City Publications that has not been distributed to shareholders as dividends. A positive retained earnings balance generally indicates that the company has been profitable over time. However, it's important to consider this figure in the context of the company's overall financial health, including its assets, liabilities, and cash flow.
For a prospective City Publications franchisee, reviewing the retained earnings can provide insights into the financial stability and profitability of the franchisor. It's advisable to compare these figures with previous years and industry benchmarks to assess the company's financial performance. Additionally, understanding how the franchisor manages its retained earnings can offer clues about its investment strategies and future growth plans. A significant change in retained earnings from year to year may warrant further investigation to understand the underlying causes and potential implications for franchisees.