What was the net cash provided by operating activities for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Statement of Cash Flows For the Year Ended October 31, 2024
| Net income | $ 198,426 |
|---|---|
| Adjustments to reconcile net income to net cash | |
| provided by operating activities | |
| Depreciation and amortization expense | 34,385 |
| Deferred income taxes | (144,000) |
| Loss on disposition of property and equipment | 123 |
| (Increase) decrease in operating assets | |
| Accounts receivable | 85,725 |
| Accounts receivable, related parties | (121,481) |
| Prepaid expenses | 4,537 |
| Increase (decrease) in operating liabilities | |
| Accounts payable and accrued expenses | 13,064 |
| Income taxes payable | 76,000 |
| Net cash provided by operating activities | 146,779 |
| Cash flows from investing activities | |
| Acquisition of property and equipment | (9,014) |
| Net cash used in investing activities | (9,014) |
| Cash flows from financing activities | |
| Note receivable | 60,500 |
| Repayment of loan payable | (29,859) |
| Due from stockholder | (26,423) |
| Net cash used in financing activities | 4,218 |
| Net increase in cash | 141,983 |
| Cash and cash equivalents, beginning of year | 161,252 |
| Cash and cash equivalents, end of year | $ 303,235 |
| Supplemental Disclosure of Cash Flow Information: | |
| Cash paid during the year for: | |
| Interest |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the net cash provided by operating activities for the year ended October 31, 2023, was $146,779. This indicates the amount of cash Carbones Pizzeria generated from its normal business operations during that period.
Understanding the net cash provided by operating activities is crucial for prospective franchisees as it reflects the financial health and stability of Carbones Pizzeria. A positive figure suggests that the company is effectively generating cash from its core business activities, which can be a good sign for potential investors. This cash can be used for various purposes, such as reinvesting in the business, paying off debts, or distributing profits.
In addition to net cash flow, prospective franchisees should also consider the individual components that contribute to this figure, such as net income, depreciation, and changes in accounts receivable and payable. These components can provide further insights into the company's financial performance and identify any potential areas of concern. For the year ended October 31, 2023, Carbones Pizzeria had a net income of $198,426, depreciation and amortization expense of $34,385, and deferred income taxes of ($144,000).
Reviewing the cash flow statement in detail helps potential Carbones Pizzeria franchisees assess the overall financial viability of the franchise and make informed decisions about their investment. It is advisable to consult with a financial advisor to fully understand the implications of these figures and how they relate to the franchisee's specific circumstances.