What was the total balance for Endless Summer Sweets on April 30, 2023?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Endless Summer Sweets Franchising Inc. Statements of Stockholder's Equity For the Period Ended December 31, 2023
| Common Stock | |||||
|---|---|---|---|---|---|
| Number of | Retained | ||||
| Shares | Amount | Earnings | Total | ||
| Share Issued | 2,000 | $ | 2,000 | - | $ 2,000 |
| Net Income | - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the total balance on April 30, 2023, was $"(13,648)". This figure represents the sum of the common stock ($2,000) and the retained earnings ($ (15,648) ) at that time.
This balance reflects the financial position of Endless Summer Sweets as of that specific date. It's important to note that this is a relatively early stage in the company's operations, as it was formed in March 2023. The negative retained earnings suggest that the company had incurred expenses or losses exceeding its income up to that point.
A prospective franchisee should consider this financial information in the context of the overall financial health and trajectory of Endless Summer Sweets. Understanding the factors contributing to the retained earnings deficit and the company's plans for future profitability would be crucial aspects of due diligence.