What were the total liabilities and stockholder's equity for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cash and cash equivalents | $ 303,235 |
|---|---|
| Accounts receivable, net of allowance for doubtful accounts of $175,595 | 202,203 |
| Due from stockholder | 519,028 |
| Accounts receivable, related party | 228,970 |
| Inventory | 3,650 |
| Prepaid expenses | 14,468 |
| Total current assets | 1,271,554 |
| Deferred tax assets | 44,000 |
| Property and equipment, net | 138,718 |
| Total assets | $ 1,454,272 |
| Liabilities and Stockholder's Equity | |
| Current liabilities: | |
| Loan payable, current portion | $ 13,587 |
| Accounts payable and accrued expenses | 44,808 |
| Income taxes payable | 76,000 |
| Total liabilities | 134,395 |
| Commitments and contingencies (Note 3 and 4) | |
| Stockholder's equity | |
| Common stock, $1.00 par value, 25,000 shares authorized, | |
| 2,500 shares issued and outstanding | 2,500 |
| Additional paid-in-capital | 266,117 |
| Retained earnings | 1,085,816 |
| Treasury stocks, at cost | (34,556) |
| Total stockholder's equity | 1,319,877 |
| Total liabilities and stockholder's equity |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's liabilities and stockholder's equity as of October 31, 2022, totaled $188,190 and the stockholder's equity section includes several components. Current liabilities totaled $174,598, encompassing a current portion of a loan payable at $29,854, accounts payable and accrued expenses amounting to $31,744, and income taxes payable of $113,000. The loan payable, net of the current portion, is $13,592, bringing the total liabilities to $188,190.
The stockholder's equity includes common stock valued at $2,500, representing 2,500 shares issued and outstanding with a par value of $1.00 per share, out of 25,000 authorized shares. Additional paid-in capital amounts to $266,117, and retained earnings total $887,390. Treasury stocks, at cost, are reported as ($34,556).
Prospective franchisees should note that this financial snapshot reflects the company's position as of October 31, 2022. Reviewing these figures provides insight into how Carbones Pizzeria is financed, the mix of debt and equity, and the accumulated profits retained within the business. Understanding these components can help a franchisee assess the financial stability and capital structure of the franchisor.