How are Learningrx's cash and cash equivalents displayed on the balance sheet?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
---------|--------------|--------------| | Current income taxes | | | | Federal | $ 42,057 | $ 3,961 | | State | 9,269 | 820 | | Deferred taxes | | | | Federal | (42,057) | 5,206 | | State | (9,029) | 1,494 | | Total | $ 240 | $ 11,481 |
4. Financial Instruments with Risk of Accounting Loss
The Corporation's cash and
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the company's cash and cash equivalents, which include checking and money market accounts, are carried at cost. The FDD specifies that the carrying amount of these deposits is presented on the balance sheet under the line item "Cash and Cash Equivalents." This means that the value listed for cash and cash equivalents reflects the original cost of these assets to Learningrx.
For a prospective Learningrx franchisee, understanding how cash is reported is crucial for assessing the company's financial health. The FDD also notes that the FDIC insures the first $250,000 of deposits per financial institution. This insurance coverage reduces the risk to Learningrx's cash holdings in the event of a bank failure.
It is important to note that while the FDD describes how Learningrx displays cash and cash equivalents on its balance sheet, it does not provide specific figures for these amounts. To gain a comprehensive understanding of Learningrx's financial position, a potential franchisee should carefully review the balance sheets included in the FDD and consult with a financial advisor.