For Deer Solution's Statement of cash flows, what is included in cash equivalents?

According to Deer Solution's 2025 Franchise Disclosure Document, cash equivalents, for the purposes of the Statement of Cash Flows, include bank accounts and cash in transit for bank deposits with maturities of three months or less. This definition is consistent across the financial statements for the years 2022, 2023 and 2024.

For a prospective Deer Solution franchisee, understanding this definition is important because it clarifies how the company classifies its most liquid assets in its financial reporting. Cash equivalents are treated as cash because they can be quickly converted to cash, and this classification impacts the reported cash flow from operating, investing, and financing activities.

The inclusion of bank accounts and short-term cash deposits (maturing in three months or less) as cash equivalents is a standard accounting practice. This provides a clear picture of Deer Solution's immediate liquidity position. Franchisees can use this information to assess the company's financial health and stability.

It is important to note that while this definition provides a general understanding, the specific amounts and changes in cash and cash equivalents are detailed in the Statement of Cash Flows itself, which would provide a more comprehensive view of Deer Solution's cash management practices.