What were the total liabilities and shareholders' equity for Crab N Spice as of December 31, 2021?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
OF DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021 BALANCE SHEET
| 12/31/23 | 12/31/22 | 12/31/21 | ||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and Cash Equivalents | $ 224 | $ 1,683 | $ 46,524 | |
| Due from Affiliate | 152,840 | 132,232 | 52,374 | |
| Accounts Receivable | 67,606 | 38,871 | 7,757 | |
| TOTAL CURRENT ASSETS | 220,669 | 172,786 | 106,655 | |
| NON-CURRENT ASSETS | ||||
| TOTAL NON-CURRENT ASSETS | - | - | - | |
| TOTAL ASSETS | 220,670 | 172,786 | 106,655 | |
| LIABILITIES AND OWNER'S EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Due to Affiliate | 62,698 | 113,689 | 46,808 | |
| Company Credit Card | 32,662 | 34,685 | 4,731 | |
| Payroll Liabilities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 40–50)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the balance sheet provides a breakdown of liabilities. As of December 31, 2021, Crab N Spice had total current liabilities of $51,539. These liabilities included $46,808 due to affiliates and $4,731 in company credit card debt. There were no payroll liabilities listed for that year.
The document does not explicitly state the total shareholders' equity as of December 31, 2021. However, it does show the total assets and total liabilities. The balance sheet equation (Assets = Liabilities + Equity) dictates that equity can be derived by subtracting total liabilities from total assets.
As of December 31, 2021, Crab N Spice had total assets of $106,655 and total current liabilities of $51,539. Therefore, the total shareholder equity can be calculated by subtracting the total liabilities from the total assets. This calculation results in a shareholder equity of $55,116 for Crab N Spice as of December 31, 2021. A prospective franchisee should verify these calculations and seek clarification from Crab N Spice regarding any further details about the shareholder equity.