What was the total value of Deka Lash's cash and cash equivalents as of 12/31/2021?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about DL Franchising, LLC's ability to continue as a going concern for a reasonable per
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the company's total value of cash and cash equivalents as of December 31, 2021, was $507,842. This figure represents the amount of readily available funds Deka Lash had at its disposal at the end of that fiscal year. Cash and cash equivalents are defined as demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements, and commercial paper with maturities of three months or less when purchased.
For a prospective franchisee, this number provides insight into the financial health and liquidity of Deka Lash at that specific point in time. While this is a historical figure, it can be used in conjunction with more recent financial statements to assess the company's financial trajectory. A substantial amount of cash and cash equivalents can indicate that the company is well-positioned to meet its short-term obligations and potentially invest in growth opportunities.
However, it is important to note that this is just one aspect of the company's overall financial picture. A prospective franchisee should also consider other factors such as the company's liabilities, revenues, and expenses to get a more comprehensive understanding of its financial stability. Reviewing trends in cash and cash equivalents over several years, as presented in the table, can provide a more insightful perspective than a single data point.