Do the Afuri Ramen Dumpling financial statements include a statement of cash flows?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We have audited the accompanying financial statements of Afuri Franchise, Inc. (the "Company"), which comprise the balance sheet as of December 31, 2023, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Source: Item 21 — Financial Statements (FDD pages 49–50)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the company's financial statements include a statement of cash flows. Specifically, the independent auditor's reports for the financial statements ending December 31, 2023 and December 31, 2022, state that the audited financial statements comprise the balance sheet, statements of operations, changes in stockholder's equity, and cash flows for the year then ended. Additionally, the independent auditor's report for the financial statements as of December 31, 2021 and 2020 also mentions that the audit included the balance sheets, statements of operations and stockholder's equity and cash flows for the years then ended.
This inclusion of a cash flow statement is a standard practice in financial reporting, as it provides insights into how Afuri Ramen Dumpling generates and uses cash. For a prospective franchisee, this statement is valuable because it shows the company's ability to manage its cash effectively, which can be an indicator of financial health and stability. It helps in understanding the company's liquidity, solvency, and overall financial structure.
The cash flow statement, when analyzed alongside the balance sheet and income statement, offers a comprehensive view of Afuri Ramen Dumpling's financial performance. Franchisees can use this information to assess the risk associated with investing in the franchise and to make informed decisions about their own financial planning. It is important to review these statements carefully and possibly consult with a financial advisor to fully understand the implications for your investment.