What is the total value of liabilities and stockholders' equity for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
ied Public Accountants
Cmte Nok Brown = Cho IC
Newtown, Pennsylvania April 19, 2023 Newtown, Pennsylvania April 19, 2023
CLOSETS UNLIMITED OF NEW JERSEY, INC. BALANCE SHEET DECEMBER 31, 2022
| ASSETS | |
|---|---|
| CURRENT ASSETS | |
| Cash | $ 674,566 |
| Accounts receivable, net | 177,403 |
| ERTC refundable credits receivable | 622,869 |
| Note receivable | 37,486 |
| Inventory | 46,012 |
| Prepaid expenses and other current assets | 25,865 |
| TOTAL CURRENT ASSETS | 1,584,201 |
| PROPERTY AND EQUIPMENT, NET | 166,232 |
| OPERATING LEASE RIGHT‐OF‐USE ASSETS | 101,778 |
| OTHER ASSETS | |
| Security deposits | 16,569 |
| Intangible assets, net | 166,667 |
| TOTAL ASSETS | $ 2,035,447 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| CURRENT LIABILITIES | $ 139,994 |
| Line of credit | |
| Long term debt, current portion | 52,064 |
| Capital lease obligations, current portion | 2,978 |
| Operating lease liabilities, current portion | 51,769 |
| Accounts payable | 67,373 |
| Accrued expenses | 147,208 |
| TOTAL CURRENT LIABILITIES | 461,386 |
| LONG TERM LIABILITIES | |
| Long term debt, net of current portion | 115,266 |
| Capital lease obligations, net of current portion | 2,054 |
| Operating lease liabilities, net of current portion | 51,318 |
| Due to affiliate | 5,421 174,059 |
| TOTAL LIABILITIES | 635,445 |
| COMMITMENTS AND CONTINGENCIES | |
| STOCKHOLDERS' EQUITY | |
| Common stock, $1 par value, 1,000 shares authorized, | |
| 300 issued and outstanding | 300 |
| Additional paid‐in capital | 844,977 554,725 |
| Retained earnings | |
| TOTAL STOCKHOLDERS' EQUITY | 1,400,002 |
| TOTAL LIABILITIES AND STOCKH |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the total value of liabilities and stockholders' equity as of December 31, 2023, is $2,035,447. This figure represents the sum of all the company's obligations to creditors and the value of ownership held by its stockholders. It is a fundamental accounting equation where total assets equal total liabilities plus stockholders' equity. This balance sheet provides a snapshot of the company's financial position at a specific point in time.
For a prospective Closet Storage Concepts franchisee, this number is an indicator of the company's overall financial health and stability. A higher number suggests that the company has a strong asset base and a healthy mix of debt and equity. Reviewing the components of liabilities and equity can provide further insights. For example, a high level of retained earnings within stockholders' equity might indicate profitability and good management of resources. Conversely, a large amount of liabilities could suggest higher financial risk.
It's important to note that this figure is based on the financial statements prepared in accordance with generally accepted accounting principles (GAAP), which involve management's estimates and assumptions. Actual results could differ from these estimates. Additionally, the financial statement includes notes that provide further details on specific items, such as related party transactions, debt obligations, and retirement plans, which can offer a more comprehensive understanding of the company's financial standing. Therefore, a prospective franchisee should carefully review the entire financial statement and accompanying notes, possibly with the help of a financial advisor, to assess the financial viability of Closet Storage Concepts.