Did the reclassifications made to Deck Medic's 2022 financial statements result in any changes to previously reported members' equity?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
12 Norwood Dr STE 100, Bedford, Texas 76022
Cell: 214-200-5434 (Mohamed Metwally) Mmetwally@metwallycpa.com
Independent Auditor's Report
To the Stockholders' of Deck Medic, Inc.
Opinion
We have audited the accompanying financial statements of Deck Medic, Inc. (the "Company") which comprise the balance sheets as of December 31, 2023 and 2022 and the related statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Deck Medic, Inc. as of December 31, 2023 and 2022 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
Based on the 2024 FDD, Deck Medic's financial statements for the years 2023 and 2022 were audited. The audit report states that the financial statements present fairly the financial position of Deck Medic as of December 31, 2023 and 2022, including the statements of operations, stockholders' equity, and cash flows for those years. This suggests that the financial statements, including the members' equity, are presented accurately for both years. The auditor's opinion indicates that the statements are in accordance with accounting principles generally accepted in the United States of America.
According to the notes within the financial statements, as of December 31, 2023 and 2022, Deck Medic had 1,000 shares of common stock authorized, issued, and outstanding, with a par value of $1 per share, totaling $1,000. Additionally, the company had $2,000 in additional paid-in capital for both years.
While the provided excerpts do not explicitly state whether reclassifications were made or if they impacted previously reported members' equity, the auditor's report implies that the financial statements, including the stockholders' equity, are fairly presented for both 2022 and 2023. A prospective franchisee should request clarification from Deck Medic regarding any reclassifications and their impact on the financial statements to ensure a clear understanding of the company's financial history.