What was the total value of Monicals Pizza's accounts receivable as of December 31, 2022?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
|-----------------------|-------------------|-------------------|-----------------| | Accounts receivable | $380,798 | $747,232 | $575,199 | | Gift cards redeemable | 845,080 | 785,655 | 732,343 |
PRE-OPENING COSTS:
The Company expenses direct training a
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the total value of accounts receivable as of December 31, 2022, was $575,199. 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, reflecting their short-term nature and expectation of collection within a 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 extensions. A higher accounts receivable balance might indicate more sales on credit, which could attract more customers but also increase the risk of uncollectible debts. Conversely, a lower balance could suggest stricter credit policies or a predominantly cash-based business model.
It's important to note that the FDD also includes accounts receivable information for December 31, 2023, and December 31, 2024, allowing for a comparative analysis of this metric over time. This trend analysis can help potential franchisees assess the stability and growth of Monicals Pizza's financial performance. Additionally, the FDD specifies that substantially all customer transactions are handled on a cash basis, which could imply that the accounts receivable balance primarily relates to transactions other than typical customer sales.