What was the accumulated depreciation for Aplus, according to the provided table?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
osts, by performing independent market research and analyses.
/s/ GRANT THORNTON LLP
We have served as the Partnership's auditor since 2015.
Dallas, Texas February 16, 2024
SUNOCO LP CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 29 | $ 82 |
| Accounts receivable, net | 856 | 890 |
| Accounts receivable from affiliates | 20 | 15 |
| Inventories, net | 889 | 821 |
| Other current assets | 133 | 175 |
| Total current assets | 1,927 | 1,983 |
| Property and equipment | 2,970 | 2,796 |
| Accumulated depreciation | (1,134) | (1,036) |
| Property and equipment, net | 1,836 | 1,760 |
| Other assets: | ||
| Operating lease right-of-use assets, net | 506 | 524 |
| Goodwill | 1,599 |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the accumulated depreciation for property and equipment was $(1,134) as of December 31, 2023, and $(1,036) as of December 31, 2022. Accumulated depreciation represents the total amount of depreciation expense that has been recognized for an asset up to a specific date. It is a contra-asset account, meaning it reduces the book value of the asset.
For a prospective Aplus franchisee, understanding accumulated depreciation is crucial for assessing the net value of the company's assets. It provides insight into the wear and tear or obsolescence of the property and equipment. A higher accumulated depreciation relative to the original cost of the assets might indicate that the assets are aging or nearing the end of their useful lives, which could imply future capital expenditure needs for replacements or upgrades.
The figures provided allow potential franchisees to evaluate the financial health and asset management practices of Aplus. By comparing these values over different periods, one can identify trends in depreciation and assess the overall condition of the company's assets. This information, combined with other financial metrics, helps in making an informed decision about investing in an Aplus franchise.
It is important to note that depreciation methods and rates can vary, and these figures reflect the specific accounting policies adopted by Aplus. Further due diligence, including a review of the complete financial statements and discussions with existing franchisees, is advisable to gain a comprehensive understanding of the company's financial position and asset management strategies.