What does Checkersrallys consider to be cash equivalents?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The following tables summarize the purchase consideration and the purchase price allocation to estimated fair value of the assets acquired and liabilities assumed as of the acquisition date, June 16, 2023:
| Fair value of stock consideration Current assets Cash and cash equivalents Accounts and notes receivable, net Inventory Prepaid expenses Other current assets | $ 97,819 17,613 5,828 3,105 3,690 1,600 | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, cash and cash equivalents are listed as a current asset with a fair value of $17,613. This indicates that Checkersrallys includes cash equivalents as part of its current assets in its financial statements.
For a prospective Checkersrallys franchisee, understanding how the company defines and values cash equivalents is important for assessing the overall financial health of the company. Cash equivalents are highly liquid assets that can be quickly converted into cash, and their inclusion in current assets reflects the company's ability to meet its short-term obligations.
This valuation provides a snapshot of Checkersrallys's immediately available resources at a specific point in time. Franchisees may want to track this figure over time to understand trends in the company's liquidity position. Reviewing the complete financial statements, including the statements of cash flow, will provide a more comprehensive understanding of how Checkersrallys manages its cash and cash equivalents.