How are deposits in-transit from banks treated as cash equivalents for Cr3 American Exteriors?

According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, deposits in-transit from banks for payments related to third-party credit card and debit card transactions are included with cash equivalents. Cash equivalents also encompass all highly liquid investments with maturities of three months or less at the date of purchase.

This accounting practice means that Cr3 American Exteriors considers these deposits as readily available cash when assessing its financial position. For a potential franchisee, this indicates that the company's reported cash and cash equivalents figure may include these in-transit deposits, reflecting a more immediate liquidity status.

This approach is fairly standard in accounting. By including these deposits, Cr3 American Exteriors aims to provide a more accurate view of its short-term assets. Prospective franchisees should be aware of this when reviewing the company's financial statements, as it affects how the company represents its liquid assets.