What was the net increase (decrease) in cash and cash equivalents for Monicals Pizza in 2024?
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 increase in cash and cash equivalents for 2024 was $567,138. This figure represents the overall change in the company's cash position during the year, taking into account all cash inflows (increases) and cash outflows (decreases).
To arrive at this number, Monicals Pizza considered cash flows from operating, investing, and financing activities. Operating activities generated a net cash flow of $2,683,629. Investing activities, which include capital expenditures and short-term investments, resulted in a net cash flow of $429,069. Financing activities, primarily distributions to shareholders and payments on finance leases, led to a net cash outflow of $2,545,560.
The beginning cash and cash equivalents balance for the year was $3,416,311, and after the net increase of $567,138, the ending cash and cash equivalents balance for 2024 was $3,983,449. This information is crucial for prospective franchisees as it provides insight into the company's financial performance and its ability to manage its cash resources.