Does the Bigfoot Forestry FDD include a statement of cash flows?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of the Statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less to be cash equivalents.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 41)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, the document refers to a statement of cash flows in its accounting policies. Specifically, the FDD mentions that for the purposes of the statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less. This indicates that a statement of cash flows is part of Bigfoot Forestry's financial statements.
This is a standard financial statement that tracks the movement of cash both into and out of a company during a specific period. It's divided into three main sections: operating activities, investing activities, and financing activities. Analyzing this statement can reveal how well Bigfoot Forestry manages its cash to pay its debts and fund its operating expenses.
For a prospective franchisee, the inclusion of a statement of cash flows in Bigfoot Forestry's FDD is beneficial. It provides greater transparency into the financial health of the franchisor. Reviewing this statement, along with other financial statements, can help potential franchisees assess the stability and profitability of Bigfoot Forestry before making a decision to invest in a franchise.