What was the cash and cash equivalents balance at the end of the year for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
its financial statements and determined that it doesn't have any lease that meet the requirement to recognize a right-of-use asset and liability because the Company doesn't have any long-term leases.
3. CASH AND CASH EQUIVALENTS
The Company maintains its cash balance in U.S. noninterest-bearing transaction accounts which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. On December 31, 2023 and 2022, the Company's cash balance didn't exceed the FDIC insurance limits.
The Company considers all cash in the bank and investments in highly liquid debt instruments
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the company had approximately $125,880 in cash and cash equivalents in its operating bank account as of December 31, 2023. In the previous year, December 31, 2022, Deck Medic had $110,883 in cash and cash equivalents.
Cash and cash equivalents are defined by Deck Medic as all cash in the bank and investments in highly liquid debt instruments with maturities of three months or less. The company maintains its cash balance in U.S. noninterest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
For a prospective franchisee, this information provides insight into the financial health and liquidity of Deck Medic. Knowing the amount of cash and cash equivalents the company holds can be an indicator of its ability to meet short-term obligations and invest in growth opportunities. The fact that Deck Medic's cash balance did not exceed the FDIC insurance limits in 2023 and 2022 suggests a conservative approach to cash management, which could be reassuring to potential franchisees.