What was the total 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 |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the total stockholder's equity as of October 31, 2023, was $1,121,451. This figure represents the ownership value of the company attributable to its stockholders after deducting all liabilities from its assets.
Specifically, the calculation includes several components. Common stock is valued at $2,500, with 2,500 shares issued and outstanding at a par value of $1.00 each. Additional paid-in capital amounts to $266,117, reflecting the excess over par value that investors paid for the stock. Retained earnings, which represent the accumulated profits of the company, total $887,390. There is also a deduction for treasury stocks, which are shares reacquired by the company, at a cost of $34,556.
For a prospective Carbones Pizzeria franchisee, understanding the franchisor's financial health is crucial. A strong stockholder's equity suggests financial stability and the ability to support the franchise network. Reviewing these figures in the context of the complete financial statements can provide insights into the overall financial performance and solvency of Carbones Pizzeria.