What was the total stockholders' equity for Deck Medic as of December 31, 2020?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
oan forgiveness | | 1.00 | | 10,417 | | Net Income / (Loss) | $ | (28,455) | $ | 79,580 | | | | | | |
The accompanying notes are an integral part of the financial statements.
| Common Sto Valu Shares | ie | 1 Par | 1.77 | ditional Paid- In Capital | Retained Earnings | Sto | Total ockholders' Equity | |
|---|---|---|---|---|---|---|---|---|
| Balance At December 31, 2020 | 1,000 | $ | 1,000 | $ | 2,000 | $ 164,865 | $ | 167,865 |
| Stockholders' distributions | × | 8 | н | (100,000) | (100,000) | |||
| Net income (loss) | - | H - | 79,580 | 79,580 | ||||
| Balance At December 31, 2021 | 1,000 | $ | 1,000 | $ | 2,000 | $ 144,445 | $ | 147,445 |
| Stoc |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the total stockholders' equity as of December 31, 2020, was $167,865. The common stock value was $1,000, additional paid-in capital was $2,000, and retained earnings amounted to $164,865.
Stockholders' equity represents the net worth of Deck Medic, reflecting the owners' stake in the company. It is calculated as the difference between Deck Medic's assets and its liabilities. For prospective franchisees, a positive and growing stockholders' equity generally indicates financial stability and a healthy balance sheet.
Fluctuations in stockholders' equity can occur due to several factors, including net income or loss, distributions to stockholders, and changes in paid-in capital. In 2021, Deck Medic made stockholders' distributions of $100,000, which decreased the total stockholders' equity. Net income of $79,580 in 2021 partially offset this decrease, resulting in a year-end balance of $147,445.
Monitoring stockholders' equity trends provides insights into Deck Medic's financial management and profitability. A consistent increase in equity suggests effective earnings retention and reinvestment, which can be a positive indicator for potential franchisees.