Do the C3 Wellness Spa financial statements include a cash flow statement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 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 58)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the financial statements include a statement of cash flows. Specifically, the document mentions that "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."
This indicates that C3 Wellness Spa provides a cash flow statement as part of its financial reporting. A cash flow statement is a standard financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. It's a crucial tool for assessing a company's liquidity and financial health.
For a prospective franchisee, the inclusion of a cash flow statement in the financial statements provides a more complete picture of C3 Wellness Spa's financial operations. It allows them to see how the company generates and uses cash, which can be helpful in evaluating the franchisor's financial stability and ability to support its franchisees. Reviewing this statement, along with the balance sheet and income statement, can give a potential franchisee greater confidence in their investment decision.