What was the total amount of 'Accumulated depreciation' for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 | |
| Total current assets | 102,061 | 106,235 | |
| Property and equipment | |||
| Furniture, fixtures and equipment | 15,913 | 14,383 | |
| Vehicles | 1,841 | 1,740 | |
| Leasehold improvements | 5,118 | 4,739 | |
| Software | 26,733 | 23,913 | |
| Finance lease right-of-use assets | 502 50,107 | 220 44,995 | |
| Accumulated depreciation | (29,978) | (24,213) | |
| Construction in process | 1,196 | 346 | |
| Total property and equipment | 21,325 | 21,128 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the accumulated depreciation for the company in 2023 was $24,213. This figure represents the total depreciation of the company's assets, such as furniture, fixtures, equipment, vehicles, leasehold improvements, software and finance lease right-of-use assets, up to the end of 2023. Accumulated depreciation is a contra-asset account, meaning it reduces the book value of the company's assets.
For a prospective Batteries Plus Bulbs franchisee, understanding accumulated depreciation is crucial for assessing the financial health and asset management practices of the company. A higher accumulated depreciation relative to the original cost of the assets may indicate that the assets are aging or nearing the end of their useful lives, which could imply future capital expenditures for replacements. Conversely, a lower accumulated depreciation might suggest newer assets or more conservative depreciation practices.
It is important to note that depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash. However, it does impact the company's net income and taxable income. Franchisees should consider the depreciation expense when evaluating the profitability of a Batteries Plus Bulbs franchise and its potential tax implications. Reviewing trends in accumulated depreciation over several years can provide insights into the company's investment in and management of its assets.