What was the accumulated depreciation for Bumper Man's property and equipment in 2023?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Kyle E. Patton, C.P.A. February 24, 2025
BALANCE SHEET
ASSETS
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Current Assets | |||
| Cash | $ 1,835,250 | $ 1,534,492 | $ 2,063,455 |
| Accounts receivables - less allowance for bad | 2,006,051 | 2,109,811 | 1,912,177 |
| debts of $159,129, $129,645, and $120,987 | |||
| Other current assets | 122,200 | 100,000 | - |
| Notes receivables | 45,903 | 40,656 | 55,568 |
| 4,009,404 | 3,784,959 | 4,031,200 | |
| Property and Equipment | |||
| Cost | 571,819 | 584,223 | 542,869 |
| Accumulated depreciation | (476,804) |
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the accumulated depreciation for property and equipment in 2023 was $510,182. This figure represents the total depreciation expense that has been recognized for Bumper Man's assets up to December 31, 2023. Accumulated depreciation is a contra-asset account, meaning it reduces the book value of the company's assets on the balance sheet.
For a prospective franchisee, this information provides insight into the financial management and asset utilization of Bumper Man. A higher accumulated depreciation relative to the cost of the assets could indicate that the assets are aging or being heavily used. This could imply potential future capital expenditures for asset replacement or upgrades.
Reviewing the trend of accumulated depreciation over the three years (2022-2024) alongside the cost of property and equipment can offer a more comprehensive understanding of Bumper Man's investment in and management of its physical assets. This information, combined with other financial metrics, can help potential franchisees assess the financial health and stability of the franchisor.