What does Afuri Ramen Dumpling consider to be cash equivalents for the statement of cash flows?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company considers cash equivalents to be highly liquid investments with original maturities of three months or less for the purposes of the statement of cash flows. This definition is consistent across the financial statements for the years 2021, 2022, and 2023.

For a prospective franchisee, this means that when reviewing Afuri Ramen Dumpling's financial statements, any assets categorized as "cash equivalents" meet this specific, short-term maturity criterion. This is a standard accounting practice, allowing for a clear understanding of the company's readily available funds.

It's important to note that while Afuri Ramen Dumpling maintains its cash in bank accounts, these accounts may at times exceed federally insured limits. However, the company states it has not experienced any losses in such accounts. This detail provides additional context regarding the company's cash management practices and risk mitigation.