What was the total cost of Bumper Man's property and equipment in 2024?
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 total cost of property and equipment for the company in 2024 was $571,819. This figure represents the original cost of all property and equipment owned by Bumper Man before accounting for any depreciation. Depreciation is the reduction in the value of an asset over time, due to wear and tear, obsolescence, or other factors. The accumulated depreciation for the same period was $476,804.
The net value of Bumper Man's property and equipment, after accounting for accumulated depreciation, was $95,015 in 2024. This is calculated by subtracting the accumulated depreciation from the original cost. For a prospective franchisee, this information provides insight into the capital investments Bumper Man has made in its own assets. It can be useful for comparison against other franchise systems or independent businesses in the same industry.
Understanding the difference between the original cost and the net value after depreciation is crucial for assessing the true financial health and asset value of Bumper Man. While the original cost reflects the initial investment, the net value provides a more accurate picture of the current worth of the company's assets. Reviewing these figures over the three-year period (2022-2024) can also reveal trends in Bumper Man's investment and depreciation strategies.