What was the net increase (decrease) in cash for Monicals Pizza in 2023?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------------|-----------------------|----|-------------| | Cash flows from operating activities: | | | | | Net income | 1,680,571 | $ | 894,285 | | Adjustments to reconcile net income to net cash | 1,000,071 | Ψ | 004,200 | | flows from operating activities: | | | | | Depreciation | 1,165,083 | | 1,177,751 | | Amortization | 431,094 | | 267,666 | | Loss on sale of fixed assets | 2,404 | | 1,030 | | Short-term investment income | (192,657) | | 1,000 | | Noncash lease expense | 832,701 | | 840,532 | | Payments on finance leases | (362,606) | | (212,222) | | Changes in assets and liabilities: | (302,000) | | (212,222) | | Accounts receivable | (172,033) | | (187,134) | | Employee Retention Credit receivable | (172,000) | | 5,639,415 | | Inventories | 25,744 | | 13,432 | | Prepaid expenses and other current assets | 51,563 | | (104,064) | | Accounts payable | (163,754) | | (146,248) | | Gift cards redeemable, net | 20,096 | | 24,095 | | Accrued expenses and other current liabilities | 510,281 | | (957,676) | | Other long-term liabilities | • | | (27,000) | | | (27,000) (818,973) | | (816,675) | | Operating lease liabilities NET CASH FLOWS FROM OPERATING ACTIVITIES | 2,982,514 | | 6,407,187 | | NET GAGITI EGWGT KOM GI EKATING ACTIVITIES | 2,302,314 | | 0,407,107 | | Cash flows used in investing activities: | | | | | Capital expenditures | (867,674) | | (1,039,334) | | Purchases of short-term investments | (5,555,000) | | - | | Proceeds from redemption of short-term investments | 26,612 | | _ | | Cash paid for acquisition of franchise store (See Note 2) | (830,000) | | _ | | Payments received on notes receivable | 1,686 | | 3,301 | | NET CASH FLOWS USED IN INVESTING ACTIVITIES | (7,224,376) , , | | (1,036,033) | | Cash flows used in financing activities: | | | | | Issuance of common stock | - | | 24,729 | | Distributions to shareholders | (1,867,625) | | (4,364,263) | | NET CASH FLOWS USED IN FINANCING ACTIVITIES | (1,867,625) • • • • • | | (4,339,534) • | | NET INCREASE (DECREASE) IN CASH | (6,109,487) | | 1,031,620 | | Cash at beginning of year | 9,525,798 | | 8,494,178 | | CASH AT END OF YEAR | 3,416,311 | $ | 9,525,798 |
FINANCIAL SUMMARY
Twelve Months Ende
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the net decrease in cash for the company in 2023 was $6,109,487. This figure represents the overall change in the company's cash position, taking into account all cash inflows and outflows from operating, investing, and financing activities during the year.
Specifically, the consolidated statement of cash flows shows that Monicals Pizza started the year 2023 with $9,525,798 in cash and ended the year with $3,416,311. This decrease can be attributed to several factors, including cash flows used in investing activities (such as capital expenditures and purchases of short-term investments) and cash flows used in financing activities (primarily distributions to shareholders).
For a prospective franchisee, this information is crucial as it provides insight into the financial health and cash management practices of Monicals Pizza. A significant decrease in cash could indicate potential challenges in managing expenses, investments, or shareholder distributions. However, it's important to consider the context of these cash flows, as investments in growth or strategic initiatives could temporarily reduce cash reserves. Therefore, a potential franchisee should investigate the reasons behind this decrease to fully understand its implications.
It is also important to note that the decrease in cash is based on the consolidated financial statements of Monical Pizza Corporation and its subsidiaries. This means that the cash flows of all entities under the Monicals Pizza umbrella are included in this calculation. A prospective franchisee should review the complete financial statements and related notes for a comprehensive understanding of the company's financial performance and cash flow dynamics.