What was the total balance for Endless Summer Sweets as of 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's 2024 Franchise Disclosure Document, the total balance as of April 30, 2023, was $"(13,648)". This figure is derived from the statement of stockholder's equity. At that time, Endless Summer Sweets had 2,000 shares issued at an amount of $2,000, but also had retained earnings of $"(15,648)".
For a prospective franchisee, this balance sheet information provides a snapshot of the company's financial standing at that specific point in time. It reflects the cumulative effect of income and expenses that Endless Summer Sweets had retained up to that date. The negative retained earnings suggest that the company's expenses and losses exceeded its revenues during its initial period of operations.
It's important to note that this is a historical figure, and the company's financial situation may have changed since then. However, reviewing such historical data can offer insights into the company's financial management and early-stage performance. A potential franchisee should consider this information in conjunction with more recent financial statements and other relevant data to form a comprehensive understanding of the franchisor's financial health.