What was the depreciation and amortization expense for Boulder Designs in 2022?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the depreciation and amortization expense for the company in 2022 was $25,680. This figure represents the accounting expense recognized for the reduction in value of Boulder Designs' assets due to wear and tear, obsolescence, or amortization of intangible assets during that year.
For a prospective Boulder Designs franchisee, understanding depreciation and amortization is important for assessing the financial health and stability of the franchisor. While this expense doesn't directly impact the franchisee's operations, it provides insight into how the franchisor manages its assets and reports its financial performance. Consistent depreciation and amortization expenses can indicate a stable asset base and predictable financial reporting practices.
It's worth noting that depreciation and amortization are non-cash expenses, meaning they don't involve an actual outflow of cash. Instead, they reflect the allocation of the cost of assets over their useful lives. Franchisees should consider this information in conjunction with other financial metrics to gain a comprehensive understanding of Boulder Designs' financial position.