What does Brightstar Care consider to be cash equivalents for the purposes of consolidated statements of cash flows?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
method of accounting, revenues are recorded when earned and expenses are recorded when incurred.
Cash and Cash Equivalents
For purposes of the consolidated statements of cash flows, cash equivalents include the general checking account held by the Company. From time to tim
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company considers cash equivalents for consolidated statements of cash flows to include the general checking account held by the company.
Brightstar Care also acknowledges that cash balances may, at times, exceed the federally insured limits of $250,000. However, Brightstar Care believes that the credit risk associated with these balances is minimal.
For a prospective franchisee, this means that Brightstar Care's financial statements will reflect cash and cash equivalents primarily as the funds held in their general checking account. While the company recognizes the possibility of exceeding insured limits, they do not express concern over this potential risk.