What was the depreciation and amortization expense for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ | 24,563 | $ | 90,000 | $ 361,555 | $ | 476,118 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 214,496 | $ | 4,020 |
| Adjustments to reconcile net income to net | ||||
| cash provided by operating activities: | ||||
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year ending December 31, 2023, was $33,509. This figure reflects the accounting expense recognized for the wear and tear or consumption of the company's assets during that period.
For a prospective Apricot Lane franchisee, understanding depreciation and amortization is crucial for assessing the financial health and stability of the franchisor. It provides insight into how the company values its assets and manages its expenses. A consistent and reasonable depreciation expense can indicate sound financial management.
It's important to note that depreciation is recorded on the straight-line method, meaning the cost of the assets is evenly distributed over their estimated service lives, which range from five to ten years. This method provides a consistent and predictable expense each year, simplifying financial forecasting and analysis. This figure is part of the total operating expenses for Apricot Lane.