What was the provision for income taxes for Management Recruiters as of December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| Current | |||
|---|---|---|---|
| Federal | $ 1,874 | $ 2,030 | |
| State | 434 | 972 | |
| Deferred | |||
| Federal | (279) | (2,045) | |
| State | (134) | (322) | |
| Provision for income taxes | 58 | $ 1,895 | $ 635 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the provision for income taxes as of December 31, 2021, was $635,000. This figure reflects the amount Management Recruiters allocated for income taxes during that fiscal year. This is an important figure for prospective franchisees to consider as it provides insight into the company's profitability and tax obligations.
Specifically, the FDD provides a consolidated statement of income that includes the provision for income taxes. This statement is crucial for understanding the overall financial performance of Management Recruiters. The provision for income taxes is deducted from the net income before income taxes to arrive at the net income from continuing operations.
Understanding the tax obligations of a franchise is essential for potential franchisees. It is important to note that this figure represents the company's overall tax provision and may not directly reflect the tax obligations of individual franchisees. Prospective franchisees should consult with a financial advisor to understand the tax implications of investing in a Management Recruiters franchise.