Does the Christian Brothers Automotive financial statement include consolidated statements of cash flow?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Board of Directors of Christian Brothers Automotive Corporation
Opinion
We have audited the consolidated financial statements of Christian Brothers Automotive Corporation, which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of income, changes in shareholders' equity and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Christian Brothers Automotive Corporation as of December 31, 2024 and 2023, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, the franchisor's financial statements do include consolidated statements of cash flow. The Independent Auditors' Report explicitly states that the audit covers the consolidated financial statements, including the consolidated balance sheets, statements of income, changes in shareholders' equity, and cash flows. These statements are prepared for the years ending December 31, 2024 and 2023.
This inclusion of consolidated statements of cash flow is a standard practice for franchisors, as it provides a comprehensive view of the company's financial activities. The cash flow statement offers insights into how Christian Brothers Automotive generates and uses cash, which is crucial for assessing its financial health and stability. Prospective franchisees should review these statements carefully to understand the company's cash management practices.
The auditor's opinion indicates that the consolidated financial statements present fairly the financial position, results of operations, and cash flows of Christian Brothers Automotive in accordance with accounting principles generally accepted in the United States of America. This opinion provides assurance that the financial statements are reliable and have been prepared using consistent and recognized accounting standards. Franchisees can use this information to evaluate the financial performance and stability of Christian Brothers Automotive.
Furthermore, the notes to the consolidated financial statements provide additional context and detail about the company's operations and accounting policies. For example, the notes describe Christian Brothers Automotive's business activities, including franchising and real estate investments, as well as significant events such as acquisitions and stock splits. Understanding these details can help franchisees gain a deeper understanding of the company's financial performance and future prospects.