What was the total value of Monicals Pizza's accounts receivable in 2022?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| ----------------------------------------- | ---- | ------------ | ---- | ------------ |
|---|---|---|---|---|
| ASSETS | ||||
| Cash | $ | 3,416,311 | $ | 9,525,798 |
| Short-term investments | 5,660,513 | - - | ||
| Accounts receivable | 747,232 | 575,199 | ||
| Inventories | 473,359 | 496,103 | ||
| Notes receivable | - | 1,686 | ||
| Prepaid expenses and other current assets | 198,006 | 189,037 | ||
| TOTAL CURRENT ASSETS | 10,495,421 | 10,787,823 | ||
| Property and equipment, net | 8,795,147 |
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 accounts receivable totaled $575,199 in 2022. This figure represents the amount of money owed to Monicals Pizza by its customers or other parties for goods or services provided on credit. Accounts receivable are considered current assets, meaning they are expected to be converted into cash within one year.
For a prospective franchisee, understanding the accounts receivable balance can provide insights into the company's financial health and its ability to manage credit. However, it's important to note that Monicals Pizza states that substantially all customer transactions are handled on a cash basis. Therefore, the accounts receivable balance may primarily relate to transactions other than direct customer sales, such as amounts due from vendors or other business partners.
It's also worth noting that the accounts receivable balance decreased from $747,232 in 2023 to $575,199 in 2022. This decrease could be due to a variety of factors, such as changes in credit policies or improved collection efforts. A prospective franchisee should inquire about the nature of these accounts receivable and the company's policies for managing and collecting them to gain a better understanding of this aspect of Monicals Pizza's financial operations.