What was the total liabilities and shareholder's equity for Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 9,391,294 $ | 4,370,648 |
Balance Sheets (Continued)
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Liabilities: | ||
| Accounts Payable | $ 1,061,526 $ | 1,241,420 |
| Accrued Liabilities | 1,790 | 458 |
| Accrued Bonus | - | 132,340 |
| Operating Lease Liability - Due Within One Year | 76,496 | 73,646 |
| Total Current Liabilities | 1,139,812 | 1,447,864 |
| Long Term Liabilities: | ||
| Due to Shareholder | 2,769,688 | - |
| Operating Lease Liability - Due After One Year | 67,655 | 141,875 |
| Total Long-Term Liabilities | 2,837,343 | 141,875 |
| Total Liabilities | 3,977,155 | 1,589,739 |
| Shareholder's Equity | ||
| Common Stock, No Par Value; 1,000,000 Shares | ||
| Authorized; 1,000,000 Shares Issued and Outstanding | 100 | 100 |
| Additional Paid-in Capital | 800 | 800 |
| Retained Earnings | 5,413,239 | 2,780,009 |
| Total Shareholder's Equity | 5,414,139 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total liabilities and shareholder's equity as of December 31, 2022, was $4,370,648. This figure represents the sum of what Craters & Freighters owed to others (liabilities) and the value of the company belonging to its shareholders (equity) at that specific point in time. This value is derived from the company's balance sheet, a standard financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific date.
For a prospective franchisee, this number offers insight into the overall financial structure and health of Craters & Freighters. A higher number suggests a larger asset base and potentially greater financial stability. However, it's crucial to analyze the components of this figure, specifically the ratio of liabilities to equity, to understand the company's leverage and risk profile. A high level of liabilities compared to equity might indicate a higher risk, as the company relies more on debt financing.
It is also important to compare this figure with previous years and industry benchmarks to identify trends and assess Craters & Freighters' financial performance relative to its peers. Significant changes in total liabilities and shareholder's equity from year to year could signal shifts in the company's financial strategy or performance. Therefore, while the total figure provides a general overview, a deeper analysis of the balance sheet and related financial statements is necessary for a comprehensive understanding.