What does Carbones Pizzeria consider to be cash equivalents?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company considers certain financial instruments as cash equivalents for accounting purposes. Specifically, Carbones Pizzeria includes "all highly liquid debt instruments purchased with original maturities of three months or less" in its definition of cash equivalents. This means that any investments the company makes in short-term debt that can be quickly converted to cash are classified as cash equivalents.

For a prospective Carbones Pizzeria franchisee, understanding this definition is important for interpreting the company's financial statements. Cash equivalents are typically included with cash on the balance sheet, providing a more complete picture of the company's short-term liquidity. This information can be useful in assessing the financial health and stability of Carbones Pizzeria.

It's worth noting that the specific types of instruments that qualify as cash equivalents can vary from company to company, but the general principle is that they are highly liquid and have a short maturity period. In the case of Carbones Pizzeria, the focus is on debt instruments with maturities of three months or less.