What were the accrued income taxes for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Net income | | | | 163,788 | | 163,788 | | Balance, October 31, 2022 | 2,500 | $ 2,500 | $ 266,117 | $ 707,489 | $ (34,556) | $ 941,550 |
Consolidated Statement of Cash Flows For the Year ended October 31, 2022
| Net income | $ 163,788 |
|---|---|
| Adjustments to reconcile net income | |
| to net cash (used-in) operating activities | |
| Depreciation and amortization | 13,190 |
| Changes in current assets and liabilities | |
| Accounts receivable | (36,337) |
| Due from stockholder | (442,937) |
| Accounts receivable-related party | (45,140) |
| Prepaid expenses | (9,231) |
| Prepaid income taxes | 12,960 |
| Accounts payable | (12,853) |
| Accrued expenses and other | 1,576 |
| Accrued income taxes | 71,420 |
| Net cash (used-in) operating activities | (283,564) |
| Cash flows from investing activities | |
| Additions to property, plant and equipment | (25,168) |
| Net cash (used-in) investing activities | (25,168) |
| Change in cash and cash equivalents | (308,732) |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the accrued income taxes are detailed in the Consolidated Financial Statements. Specifically, the adjustments to reconcile net income to net cash used in operating activities include a line item for accrued income taxes. For the period analyzed, the accrued income taxes amounted to $71,420. This figure reflects the income taxes that Carbones Pizzeria has incurred but not yet paid as of the financial statement date.
This information is crucial for prospective franchisees as it provides insight into the company's financial obligations and tax management practices. Accrued income taxes represent a liability on the balance sheet, indicating the amount Carbones Pizzeria owes to taxing authorities. Understanding this liability helps franchisees assess the financial health and stability of the company.
Franchisees should consider this figure in conjunction with other financial data to gain a comprehensive understanding of Carbones Pizzeria's financial position. It is also important to note that these figures are based on unaudited financial statements, as indicated in the document. Therefore, prospective franchisees should exercise caution and seek professional advice when interpreting this information.