What is the total value of assets reported for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Total | ||
|---|---|---|
| ASSETS | , | |
| Current Assets | ||
| Bank Accounts | ||
| 1008 Wells Fargo Extreme Art 3537Checking | 15,001.21 | |
| Total Bank Accounts | $ | 15,001.21 |
| Accounts Receivable | ||
| 1100 Accounts Receivable | 0.00 | |
| Total Accounts Receivable | $ | 0.00 |
| Other Current Assets | ||
| Total Other Current Assets | $ | 0.00 |
| Total Current Assets | $ | 15,001.21 |
| Fixed Assets | ||
| 1500 Furniture and Equipment | 0.00 | |
| Total 1500 Furniture and Equipment | $ | 0.00 |
| 1600 Accumulated Depreciation | 0.00 | |
| Total Fixed Assets | $ | 0.00 |
| Other Assets | ||
| Tota |
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 assets as of December 31, 2023, were $15,001.21. These assets are primarily comprised of cash held in a Wells Fargo checking account. The balance sheet provides a snapshot of the company's financial position at the end of the year, detailing its assets, liabilities, and equity. For Extreme Art Studio, the assets mainly consist of its bank accounts.
The current assets include $15,001.21 in bank accounts and zero accounts receivable. There are no reported fixed assets or other assets. This indicates that Extreme Art Studio's assets are highly liquid, primarily held in cash. The liabilities and equity section shows a total of $15,000 in long-term liabilities and $1.21 in equity, balancing out the total assets.
For a prospective franchisee, understanding the asset composition of Extreme Art Studio is crucial. A high proportion of liquid assets suggests the company has readily available funds. However, the balance sheet also reveals long-term liabilities of $15,000, which franchisees should consider in relation to the company's overall financial health and stability. Reviewing these figures in conjunction with the income statement and cash flow statement will provide a more comprehensive view of Extreme Art Studio's financial performance.