What was the total stockholder's equity reported for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
dentified during the audit.
Arcadia, California
May 31, 2024
M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Balance Sheet October 31, 2023
Assets
| Cash and cash equivalents | $ 161,252 |
|---|---|
| Accounts receivable, net of allowance for doubtful accounts of $109,133 | 287,928 |
| Due from stockholder | 492,605 |
| Accounts receivable, related party | 107,489 |
| Inventory | 3,650 |
| Prepaid expenses | 19,005 |
| Total current assets | 1,071,929 |
| Note receivable | 60,500 |
| Deferred tax assets | 13,000 |
| Property and equipment, net | 164,212 |
| Total assets | $ 1,309,641 |
| Liabilities and Stockholder's Equity | |
| Current liabilities: | |
| Loan payable, current portion | $ 29,854 |
| Accounts payable and accrued expenses | 31,744 |
| Income taxes payable | 113,000 |
| Total current liabilities | 174,598 |
| Loan payable, net of current portion | 13,592 |
| Total liabilities | 188,190 |
| Commitments and contingencies (Note 5) | |
| 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 | 887,390 |
| Treasury stocks, at cost | (34,556) |
| Total 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 total stockholder's equity is detailed in the consolidated financial statements as of October 31, 2023. The components of the stockholder's equity include common stock with a par value of $1.00, with 2,500 shares issued and outstanding, totaling $2,500. Additional paid-in capital amounts to $266,117. Retained earnings contribute significantly to the equity, totaling $887,390. There is also a deduction for treasury stocks at cost, amounting to ($34,556).
In summary, the stockholder's equity provides a snapshot of the ownership value in Carbones Pizzeria. The common stock and additional paid-in capital represent the initial investment by stockholders, while retained earnings reflect the accumulated profits of the company that have not been distributed as dividends. The treasury stock represents shares that the company has repurchased from the open market, reducing the overall equity.
For a prospective franchisee, understanding the stockholder's equity can offer insights into the financial structure and stability of Carbones Pizzeria. A healthy stockholder's equity generally indicates a strong financial foundation, which can be reassuring for franchisees considering investing in the brand. However, it is essential to review these figures in conjunction with other financial metrics and performance indicators to gain a comprehensive understanding of the company's financial health.