What is the total amount reported for long-term liabilities for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2000 Accounts Payable | 0.00 |
|---|---|
| Total Accounts Payable | $ 0.00 |
| Credit Cards | |
| Total Credit Cards | $ 0.00 |
| Other Current Liabilities | |
| 2100 Payroll Liabilities | 0.00 |
| 2408 WF Line of Credit 2314 | 0.00 |
| Total 2450 Deferred Revenue | $ 0.00 |
| Total Other Current Liabilities | $ 0.00 |
| Total Current Liabilities | $ 0.00 |
| Long-Term Liabilities | |
| 2430 Note Payable - Long Term | 15,000.00 |
| Total Long-Term Liabilities | $ 15,000.00 |
| Total Liabilities | $ 15,000. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the company's total long-term liabilities as of December 31, 2023, amounted to $15,000. This figure is derived from a note payable categorized as long-term.
Specifically, the balance sheet lists a "Note Payable - Long Term" with a value of $15,000.00, which constitutes the entirety of the company's long-term liabilities. This liability contributes to the total liabilities of Extreme Art Studio, which also amounts to $15,000.00.
Prospective franchisees should note that long-term liabilities represent financial obligations that Extreme Art Studio is expected to settle beyond the coming year. Understanding the nature and terms of this note payable is crucial for assessing the company's financial health and stability. It is important to investigate the details of this liability, such as the interest rate, repayment schedule, and any collateral involved, to fully understand its implications for Extreme Art Studio's financial position.