Does the Deer Solution Statement of Cash Flows include non-cash investing and financing activities?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ions | 100,000 | | Members' distributions | (60,600) | | Net income / (loss) | 76,903 | | Members' Equity At December 31, 2022 | $ 116,303 |
Deer Solution Franchising, LLC Statement Of Cash Flows Year Ended December 31, 2022
| 2022 | |
|---|---|
| Cash Flows From Operating Activities | |
| Net income / (loss) | $ 76,903 |
| Adjustments to reconcile net income to net cash | |
| provided by operating activities | |
| Change in operating activities | |
| Change in prepaid commissions - current portion | (67,857) |
| Change in prepaid commissions - net of current portion | (339,286) |
| Change in deferred revenue - current portion | 50,143 |
| Change in deferred revenue - net of current portion | 250,714 |
| Change in accrued liabilities | 35,000 |
| Net Cash Provided By (Used In) Operating Activities | 5,617 |
| Cash Flows From Investing Activities | |
| Members' contributions | 100,000 |
| Members' distributions | (60,600) |
| Net Cash Flows Provided By (Used In) Investing Activities | 39,400 |
| Cash Flows From Financing Activities | |
| Net Cash Flows Pro |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 FDD, the Statement of Cash Flows for Deer Solution includes cash flows from operating, investing, and financing activities. The provided excerpts from the FDD do not explicitly mention or list any non-cash investing and financing activities. The statement of cash flows is presented for the year 2022.
For the year 2022, cash flows from operating activities include adjustments to reconcile net income to net cash provided by operating activities, such as changes in prepaid commissions and deferred revenue. Investing activities include members' contributions and distributions. However, there is no specific line item or disclosure indicating non-cash transactions within these activities.
A prospective franchisee should inquire with Deer Solution about whether the company's Statement of Cash Flows includes non-cash investing and financing activities. Understanding the extent of these non-cash activities can provide a more comprehensive view of the company's financial transactions and overall financial health. This information is essential for making an informed investment decision.
It is important to note that the absence of explicit mention of non-cash activities does not necessarily mean they do not exist. It is possible that such activities are either immaterial or disclosed elsewhere in the financial statements or related notes that were not included in the provided excerpts.