What was the total amount of income taxes payable 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 expens |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's provision for income taxes varies across different fiscal years. For the year ended October 31, 2023, the provision for income taxes was $100,000. In contrast, for the year ended October 31, 2024, the company experienced an income tax benefit of $68,000. Looking at the year ended October 31, 2022, the income tax expense was $56,702.
These figures reflect the amount of income taxes either payable or the benefit received by Carbones Pizzeria during those specific accounting periods. A prospective franchisee should understand that these values can fluctuate significantly from year to year, depending on the company's profitability, changes in tax laws, and other financial factors.
It's important to note that these figures represent the provision for income taxes, which is an estimate of the income tax expense or benefit for the period. The actual amount of taxes payable may differ due to various factors, including adjustments made during the tax filing process. A potential franchisee should consult with a financial advisor to fully understand the tax implications of investing in a Carbones Pizzeria franchise and to assess the company's historical tax performance.
Understanding the tax implications is crucial for assessing the overall financial health and stability of Carbones Pizzeria. While the FDD provides some insight into the company's past tax liabilities and benefits, prospective franchisees should conduct their own due diligence and seek professional advice to make informed investment decisions.