What was the net cash used in operating activities for Carbones Pizzeria?

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 figure represents the cash generated from the company's normal business operations.

To arrive at this number, the net income of $198,426 was adjusted by several items. These adjustments include depreciation and amortization expense of $34,385, deferred income taxes of $(144,000), and a loss on the disposition of property and equipment of $123. Changes in operating assets and liabilities also factored in, such as accounts receivable ($85,725), accounts receivable from related parties ($121,481), prepaid expenses ($4,537), accounts payable and accrued expenses ($13,064), and income taxes payable ($76,000).

It is important to note that this figure reflects the performance of M & T Pizza Incorporated and its subsidiaries, Carbone & Sons, Inc., and Carbone Pizza, Inc. As a prospective franchisee, understanding the cash flow from operations is crucial as it indicates the financial health and stability of the company. A positive cash flow from operations suggests that the company is capable of meeting its current obligations and has funds available for future investments or expansion.