What was the total stockholders' equity for Deck Medic as of December 31, 2022?
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, 2022, was $119,272. This figure is derived from several components, including common stock valued at $1,000, additional paid-in capital of $2,000, and retained earnings of $116,272.
Stockholders' equity represents the net worth of Deck Medic, reflecting the owners' stake in the company's assets after deducting liabilities. For a prospective franchisee, this figure provides insight into the financial stability and overall capitalization of the franchisor. A higher stockholders' equity generally indicates a stronger financial foundation, which can be reassuring for franchisees who are investing in the brand.
It's important to note that stockholders' equity can fluctuate due to factors such as net income or loss, distributions to stockholders, and changes in paid-in capital. The provided table also shows the changes in stockholders' equity from December 31, 2020, to December 31, 2022, illustrating the impact of these factors on Deck Medic's financial position. Reviewing these trends can offer a more comprehensive understanding of the company's financial management and performance.
Prospective franchisees should consider stockholders’ equity in conjunction with other financial metrics and information provided in the FDD to assess the overall financial health and stability of Deck Medic. Consulting with a financial advisor is recommended to fully understand the implications of these figures for their investment decision.