What was the value of accounts receivable for Monicals Pizza as of December 31, 2024?
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 value of accounts receivable as of December 31, 2024, was $380,798. The FDD also provides the accounts receivable values for previous dates, which were $747,232 as of December 31, 2023, and $575,199 as of January 1, 2023.
Accounts receivable generally represents money owed to Monicals Pizza by its customers or franchisees for goods or services delivered but not yet paid for. The decrease in accounts receivable from 2023 to 2024 could be due to a variety of factors, such as changes in credit policies, improved collection efforts, or a decrease in sales on credit.
For a prospective Monicals Pizza franchisee, understanding the accounts receivable trends can provide insights into the financial health and operational efficiency of the company. It's also worth noting that the majority of accounts receivable is comprised of credit card receivables. Additionally, Monicals Pizza uses the allowance method to account for uncollectible accounts receivable, estimating the allowance based on historical collection experience and a review of the current status of trade accounts receivable. As of December 31, 2023 and 2022, no allowance was provided as all receivables were considered collectible.