What pages contain the Notes to Consolidated Financial Statements for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | $ 4,108 |
| Income taxes | $ - |
Notes to Consolidated Financial Statements For the Year Ended October 31, 2024
1. Nature of Business
M & T Pizza Incorporated and Subsidiaries (collectively "the Company") is engaged in the business of selling restaurant franchises. The Company generates revenue primarily from restaurant royalties and franchise fees from franchised Carbone's Pizzeria locations in Minnesota, Wisconsin, and Montana and the operation of a Company owned franchise in Minnesota.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, the Notes to Consolidated Financial Statements for Carbones Pizzeria are located on the following pages: page 70, page 71, page 84, page 85, page 99, page 101, page 102, and page 103. These notes provide additional details and explanations regarding the financial statements of M & T Pizza Incorporated and its subsidiaries, including Carbone & Sons, Inc. and Carbone Pizza, Inc. The notes cover various accounting policies, practices, and items that impact the financial reporting of Carbones Pizzeria.
These notes are an integral part of understanding the financial health and performance of Carbones Pizzeria. They offer insights into how the company recognizes revenue, handles advertising expenses, and accounts for income taxes. For example, the notes explain that advertising costs are expensed as incurred and detail the amount spent on advertising and promotion for the year ended October 31, 2022, which was approximately $506,000. They also describe how the company accounts for income taxes, including deferred income taxes and the evaluation of uncertain tax positions.
Prospective franchisees should carefully review these notes to gain a comprehensive understanding of Carbones Pizzeria's financial reporting practices. Understanding these practices can help franchisees assess the financial stability and transparency of the franchisor. It is also important to note that the notes include information about the company's accounting policies, such as revenue recognition, principles of consolidation, and the use of estimates, which can impact the reported financial results.
By examining the Notes to Consolidated Financial Statements, potential franchisees can make more informed decisions about investing in a Carbones Pizzeria franchise. These notes provide valuable context and clarification that can help franchisees evaluate the financial risks and opportunities associated with the franchise.