What was the total equity for Spray Net at December 31, 2023?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Commitment and Contingencies | (29,320) | (120,680) | 150000 | | Due to related parties | - | (76,268) | (35,934) | | Contract Liability | 737,647 | (221,397) | 1,792,931 | | Deferred income taxes | _ | _ | 5,470 | | Deferred convention revenue | _ | (35,790) | (5,932) | | Brand fund liability | | (80,280) | 933 | | Income tax payable | | | (24,000) | | | 61,755 | 27,783 | (210,425) | | | | | | | Cash Flows from Financing Activities: | | | | | Prior Period adjustment | _ | _ | (41,113) | | | | | | | | | | | | Net Increase in Cash | 61,755 | 27,783 | (251,538) | | | | | | | Cash - Beginning of year | 81,473 | 53,690 | 305,228 | | | | | | | Cash - End of year | $ 143,228 | $ 81,473 | $ 53,690 |
| | nmon | Pa | litional nid in npital | Retained Earnings | 1 | Total | |---------------------------------------------------
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the total equity at December 31, 2023, was $22,822. This figure represents the culmination of equity at the start of the year, which was ($816,883), and the net income for that year, which amounted to $839,705.
Equity is a critical indicator of a company's financial health, representing the owner's stake in the business after deducting liabilities from assets. A positive equity balance, as Spray Net had in 2023, generally suggests that the company's assets exceed its liabilities. However, it's important to consider the trend in equity over multiple years to get a comprehensive understanding of the company's financial stability and growth.
Prospective franchisees should examine these equity figures in conjunction with other financial statements, such as the balance sheet and income statement, to assess Spray Net's overall financial performance and stability. Understanding the factors that contribute to changes in equity, such as net income, prior period adjustments, and any additional capital contributions, can provide valuable insights into the company's financial management and future prospects. Additionally, it is important to note that the equity at December 31, 2024 was a deficit of ($777,723).