What was the provision for income taxes for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
der's equity | 1,121,451 | | Total liabilities and stockholder's equity | $ 1,309,641 |
Consolidated Statement of Operations For the Year Ended October 31, 2023
| Royalties | $ 906,513 |
|---|---|
| Company restaurant sales | 765,521 |
| Advertising fund revenues | 268,596 |
| Rebate revenue | 140,146 |
| Total revenues | 2,080,776 |
| Cost of company restaurant sales | |
| Food and beverage | 288,977 |
| Labor | 602,817 |
| Direct expenses | 174,042 |
| Total cost of company restaurant sales | 1,065,836 |
| Operating expenses | |
| Marketing and advertising | 278,545 |
| General and administrative | 571,564 |
| Total operating expenses | 850,109 |
| Income from operations | 164,831 |
| Other income | 115,070 |
| Income before provision for income taxes | 279,901 |
| Provision for income taxes | 100,000 |
| Net income | $ 179,901 |
M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Statement of Changes in Stockholder's Equity For the Year Ended October 31, 2023
| Commo Shares | on Stock Amount | Common Stock nares Amount | Retained Earnings | Treasury stock | Total Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance, October 31, 2022 | 2,500 | $ | 2,500 | $ 266,117 | $ | 707,489 | $ | (34,556) | $ | 941,550 | ||
| Net income | 179,901 | 179,901 | ||||||||||
| Balance, October 31, 2023 | 2,500 | $ | 2,500 | $ 266,117 | $ | 887,390 | $ | (34,556) | $ | 1,121,451 |
M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Statement of Cash Flows For the Year Ended October 31, 2023
| Net income | $ 179,901 |
|---|---|
| Adjustments to reconcile net income to net cash | |
| provided by operating activities | |
| Depreciation and amortization expense | 35,738 |
| Deferred income taxes | (13,000) |
| (Increase) decrease in operating assets | |
| Accounts receivable | (55,096) |
| Accounts receivable, related parties | (62,349) |
| Prepaid expenses | 5,485 |
| Prepaid income taxes | 4,516 |
| Increase (decrease) in operating liabilities | |
| Accounts payable and accrued expenses | 13,178 |
| Income taxes payable | 32,491 |
| Net cash provided by operating activities | 140,864 |
| Cash flows from investing activities | |
| Acquisition of property and equipment |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria FDD, the provision for income taxes can be gleaned from the consolidated financial statements. For the year ended October 31, 2023, the provision for income taxes was $100,000. For the year ended October 31, 2022, there was an income tax benefit of ($68,000). For the year ended October 31, 2021, the provision for income taxes was $49,000, resulting in a net loss of ($28,400).
These figures reflect Carbones Pizzeria's tax liabilities and benefits as calculated according to accounting standards. A prospective franchisee should note that these provisions can fluctuate significantly year to year, impacting the net income of the company. Factors such as changes in tax laws, profitability, and accounting methods can all influence these figures.
Understanding these past tax provisions can help a potential franchisee appreciate the financial dynamics of Carbones Pizzeria. However, it is important to consult with a financial advisor to project potential future tax implications for both the franchisor and individual franchise operations. Reviewing the complete financial statements and related notes in the FDD is crucial for a comprehensive understanding.