What was the total amount of retained earnings for Monicals Pizza at the end of December 31, 2023?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Capital - | Retained | Total | |||
|---|---|---|---|---|---|
| Treasury Stock | Earnings | ||||
| Balances at January 1, 2023 | 391,250 | $ 2,257,777 | $ 12,100 | $ 12,668,292 | $ 14,938,169 |
| Net income | - | - | - | 1,680,571 | 1,680,571 |
| Distributions to owners | - | - | - | (1,867,625) | (1,867,625) |
| Balances at December 31, 2023 | 391,250 | 2,257,777 | 12,100 | 12,481,238 | 14,751,115 |
| Net income | - | - | - | 1,849,358 | 1,849,358 |
| Distributions to owners | - | - | - | (2,193,095) | (2,193,095) |
| Balances at December 31, 2024 | 391,250 | $ 2,257,777 | $ 12,100 | $ 12,137,501 | $ 14,407,378 |
**CONSOLIDATED STATEMENTS OF CAS
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the company's consolidated statement of owners' equity provides details on retained earnings. On January 1, 2023, the retained earnings balance was $12,668,292. During 2023, Monicals Pizza had a net income of $1,680,571 but also distributed $1,867,625 to owners.
Accounting for these changes, the retained earnings balance at the end of December 31, 2023, was $12,481,238. This figure represents the accumulated profits of Monicals Pizza that have been retained in the business and not distributed to its owners as of that date.
For a prospective franchisee, retained earnings can be an indicator of the financial health and stability of Monicals Pizza. A strong retained earnings balance suggests that the company has been profitable and has managed its finances effectively. However, it is important to consider this figure in conjunction with other financial metrics and information about the company's operations and future plans.