What does Bee Organized include in its definition of 'cash and cash equivalents'?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
f contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents – Cash and cash equivalents include cash held in checking accounts.
NOTE 2 – Cash and Credit Risk
The carrying amount of the Company's deposits was $ 664 and $ 4,514 as of December 31, 2024 and 2023. The bank balance was $ 2,889 and $ 13,425 as of December 31, 2024 and 2023. The difference between the carrying amount and the bank balance was outstanding checks and deposits in transit. Cash and cash equivalents includes demand deposits and funds invested at market rates in interest bearing accounts.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, cash and cash equivalents include cash held in checking accounts, demand deposits, and funds invested at market rates in interest-bearing accounts. This definition is important for understanding Bee Organized's financial statements, as it clarifies which assets are considered highly liquid and readily available for the company's immediate needs.
For a prospective Bee Organized franchisee, understanding this definition can be helpful when reviewing the company's balance sheets and assessing its financial health. Knowing what Bee Organized considers to be cash equivalents allows for a more accurate interpretation of their financial position.
Additionally, the FDD notes that the Federal Deposit Insurance Corporation (FDIC) insures demand and interest-bearing accounts up to $250,000 per bank per account type. The company's demand deposit funds were fully secured as of December 31, 2024 and 2023. This provides insight into how Bee Organized manages its cash and mitigates risk related to its deposits.