What was the amount of accumulated depreciation for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ess of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the accumulated depreciation for the company's equipment in 2023 was $99,331. This figure represents the total depreciation expense recognized on Boulder Designs' equipment up to the end of 2023.
Accumulated depreciation is a contra-asset account that reduces the book value of an asset on a balance sheet. For Boulder Designs, this means that the original cost of their equipment is reduced by the amount of accumulated depreciation to reflect the equipment's current value. The equipment had an original cost of $174,927 in 2023, which was reduced to a net value of $75,596 after accounting for the accumulated depreciation.
Prospective franchisees should understand how Boulder Designs depreciates its assets, as this can impact the company's profitability and tax obligations. Reviewing the depreciation methods and useful lives of assets can provide insights into the company's accounting practices and financial health. It is also important to note that depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash, but it does affect the company's reported earnings.