What statements related to cash flow are included in the Degree Wellness financial statements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this Franchise Disclosure Document as Exhibit G are:
Degree Wellness Franchise, LLC's audited balance sheets as of December 31, 2024, and the related statements of income, retained earnings, and of cash flow for the years then ended.
We have audited the financial statements of Degree Wellness Franchise, LLC, which comprise the balance sheet as of December 31, 2024, and the related statements of earnings and members' equity (deficit) and cash flows for the period April 1, 2024 through December 31, 2024, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Degree Wellness Franchise, LLC as of December 31, 2024, and the results of its operations and its cash flows for the period April 1, 2024 through December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.
The Company places its temporary cash investments with high credit quality financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit.
Source: Item 21 — Financial Statements (FDD page 66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the company's financial statements include a statement of cash flows. Specifically, the independent auditor's report states that the audit encompassed the balance sheet as of December 31, 2024, and the related statements of earnings and members' equity (deficit), as well as cash flows for the period from April 1, 2024, through December 31, 2024. This indicates that a cash flow statement is a component of the audited financial statements.
Furthermore, the auditor's opinion confirms that the financial statements present fairly the financial position of Degree Wellness as of December 31, 2024, and the results of its operations and cash flows for the specified period, in accordance with accounting principles generally accepted in the United States of America. This suggests that the cash flow statement adheres to standard accounting practices.
Additionally, the notes to the financial statements mention the company's policy regarding cash investments. Degree Wellness places its temporary cash investments with high credit quality financial institutions, and these investments may, at times, exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit. This disclosure provides insight into how the company manages its cash reserves and the potential risks associated with those investments.