What was the value of accumulated depreciation for Batteries Plus Bulbs in the later year?
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) |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the accumulated depreciation in 2024 was $29,978. This figure reflects the total depreciation recognized on the company's assets up to that point in time. Accumulated depreciation is a contra-asset account that reduces the book value of assets like furniture, fixtures, equipment, vehicles, leasehold improvements, and software.
For a prospective Batteries Plus Bulbs franchisee, understanding accumulated depreciation is crucial for assessing the net value of the company's assets. It provides insight into how much of the initial investment in assets has been expensed over time. This can influence decisions related to capital expenditures and asset management within their own franchise.
The increase in accumulated depreciation from $24,213 in 2023 to $29,978 in 2024 indicates that Batteries Plus Bulbs recognized additional depreciation expense during the year. This expense reflects the wear and tear or obsolescence of the company's assets. Monitoring these figures can help franchisees understand the financial health and asset management practices of Batteries Plus Bulbs.