What is management required to evaluate when preparing Bath Tune Up's financial statements?

According to the 2025 FDD, when preparing Bath Tune Up's financial statements, management is responsible for ensuring they are presented fairly and in accordance with accounting principles generally accepted in the United States of America. This includes designing, implementing, and maintaining internal controls relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Specifically, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Bath Tune Up's ability to continue as a going concern for one year after the date the financial statements are available to be issued. This assessment is crucial for stakeholders to understand the company's financial health and stability.

Additionally, in preparing the financial statements, Bath Tune Up's management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements. They also estimate the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for credit losses related to accounts, notes, and rebates receivable, and the allocation of the Parent's expenses to the Company. These estimates are a critical part of financial reporting, though actual results could materially differ from those estimates.