What was the depreciation of fixed assets for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
----|--------------------| | Cost of revenues | | 10,001,056 | 5,463,228 | | Gross profit | | 24,596,601 | 20,563,296 | | Operating expenses: | | | | | Selling, general and administrative | | 20,522,378 | 18,837,743 | | Depreciation and amortization | | 11,307,800 | 10,597,574 | | Total operating expenses | _ | 31,830,178 | 29,435,317 | | Loss from operations | | (7,233,577) | (8,872,021) | | Other income (expense): | | | | | Interest expense | | (5,506,427) | (3,821,499) | | Gain on sale of unconsolidated subsidiary | | - | 1,025,637 | | Other income (expense) | | (204,868) | (51,463) | | Total other expense, net | | (5,711,295) | (2,847,325) | | Loss before income taxes | | (12,944,872) | (11,719,346) | | Income
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts' depreciation of fixed assets for the year 2023 was $11,179,113. This figure is part of the adjustments made to reconcile the net loss to net cash used in operating activities. In 2022, the depreciation of fixed assets was $10,568,470.
Depreciation is a non-cash expense that reflects the reduction in value of 1 800 Packouts' fixed assets (such as equipment and buildings) over time. It's an accounting method to allocate the cost of these assets over their useful lives. The depreciation expense is used to reduce the company's reported profit, which in turn affects the net cash flow from operating activities.
For a prospective 1 800 Packouts franchisee, understanding depreciation is important because it impacts the company's financial statements and can affect profitability calculations. While depreciation doesn't involve an actual outflow of cash, it does reduce taxable income, which can lower income tax obligations. Monitoring depreciation trends can provide insights into the company's investments in fixed assets and how these assets are being utilized to generate revenue.