What was the net value of Batteries Plus Bulbs' merchandise inventories in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | |||
|---|---|---|---|
| Current assets | |||
| Cash and cash equivalents | $ 26,197 | $ 1,018 | |
| Accounts receivable, net | 25,763 | 26,516 | |
| Merchandise inventories, net | 48,576 | 61,322 | |
| Prepaid expenses | 4,665 | 4,472 | |
| Due from marketing fund | 1,034 | 1,328 | |
| Note receivable - store sale | - | 541 | |
| Due from franchisees | - | 126 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the net value of merchandise inventories as of December 31, 2023, was $48,576. This figure represents the value of the company's inventory after accounting for a reserve for inventory obsolescence.
Specifically, the gross merchandise inventories were valued at $51,367, but a reserve of $2,791 was applied to account for potential obsolescence, resulting in the net value of $48,576. This accounting practice is common to reflect the realistic value of inventory that might not be sold at its original cost due to damage, spoilage, or obsolescence.
For a prospective Batteries Plus Bulbs franchisee, this indicates the level of investment the company maintains in its inventory and how it accounts for potential losses due to unsold or obsolete items. Understanding the inventory management and valuation practices of Batteries Plus Bulbs can be crucial for franchisees in managing their own inventory and financial planning.