Do the Afuri Ramen Dumpling financial statements include an income statement?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the financial statements include a statement of operations. The independent auditor's report states that the audit encompassed the balance sheets as of December 31, 2021, and 2020, along with the related statements of operations, stockholder's equity, and cash flows for the years then ended. This indicates that an income statement, also known as the statement of operations, is part of Afuri Ramen Dumpling's audited financial statements.

This inclusion is standard practice for audited financial statements, as the statement of operations provides a summary of revenues, expenses, and profits over a specific period, offering insights into the company's financial performance. Franchisees reviewing the FDD can use this information to assess the financial health and profitability trends of Afuri Ramen Dumpling.

The auditor's report also details the responsibilities of both the management and the auditors in preparing and auditing these financial statements. Management is responsible for the fair presentation of the financial statements, while the auditors are responsible for expressing an opinion based on their audit. This process ensures that the financial information is reliable and presented in accordance with accounting principles generally accepted in the United States of America.

Prospective franchisees should carefully review the statement of operations, along with the other financial statements and notes, to gain a comprehensive understanding of Afuri Ramen Dumpling's financial condition and performance. Understanding the franchisor's financial stability is crucial for assessing the risks and opportunities associated with investing in an Afuri Ramen Dumpling franchise.