What were the net cash flows from operating activities for Monicals Pizza in 2023?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------|-----------------|-----------------| | Cash flows from operating activities: | | | | Net income | $ 1,849,358 | $ 1,680,571 | | Adjustments to reconcile net income to net cash | | | | flows from operating activities: | | | | Depreciation | 1,119,873 | 1,165,083 | | Amortization | 471,076 | 431,094 | | Loss on sale of fixed assets | - | 2,404 | | Short-term investment income | (360,258) | (192,657) | | Noncash lease expense | 822,885 | 832,701 | | Changes in assets and liabilities: | | | | Accounts receivable | 366,434 | (172,033) | | Inventories | 354 | 25,744 | | Prepaid expenses and other current assets | (47,711) | 51,563 | | Accounts payable | (10,875) | (163,754) | | Gift cards redeemable, net | 24,292 | 20,096 | | Accrued expenses and other current liabilities | (786,488) | 510,281 | | Other long-term liabilities | 52,000 | (27,000) | | Operating lease liabilities | (817,311) | (818,973) | | NET CASH FLOWS FROM OPERATING ACTIVITIES | 2,683,629 | 3,345,120 | | | | | | Cash flows from investing activities: | | | | Capital expenditures | (1,240,497) | (867,674) | | Purchases of short-term investments | (1,000,000) | (5,555,000) | | Proceeds from redemption of short-term investments | 2,669,566 | 26,612 | | Cash paid for acquisition of franchise store (See Note 2) | - | (830,000) | | Payments received on notes receivable | - | 1,686 | | NET CASH FLOWS FROM INVESTING ACTIVITIES | 429,069 | (7,224,376) | | Cash flows from financing activities: | | | | Distributions to shareholders | (2,193,095) | (1,867,625) | | Payments on finance leases | (352,465) | (362,606) | | NET CASH FLOWS FROM FINANCING ACTIVITIES | (2,545,560) | (2,230,231) | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 567,138 | (6,109,487) | | Cash and cash equivalents at beginning of year | 3,416,311 | 9,525,798 | | CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 3,983,449 | $ 3,416,311 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Monical Pizza C
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the net cash flows from operating activities in 2023 were $3,345,120. This figure represents the cash generated from the company's core business operations during that year. It's a key indicator of Monicals Pizza's financial health and its ability to fund ongoing expenses and future growth.
Several factors contributed to this net cash flow. These include net income of $1,680,571, adjustments for non-cash items like depreciation ($1,165,083) and amortization ($431,094), and changes in assets and liabilities. These adjustments reconcile net income to the actual cash generated by operations.
For a prospective Monicals Pizza franchisee, understanding the net cash flows from operating activities is crucial. It provides insight into the brand's profitability and stability. A positive and consistent cash flow indicates that the business model is sustainable and can support both the franchisor's and franchisees' financial needs. However, it is important to review these figures in the context of the company's overall financial statements and industry trends to gain a comprehensive understanding.