What was the accumulated depreciation for Chem Dry property and equipment in 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| $ 2,435 | $ 3,563 |
The activity in the allowance for credit losses is as follows:
| 2023 | |
|---|---|
| Balance at beginning of period | $ 1,746 |
| Additions charged to expense | 292 |
| Deductions/write-offs | (923) |
| Balance at end of period | $ 1,115 |
December 31, 2023, 2022, and 2021 (000s omitted)
Note 8 - Property and Equipment
Property and equipment at December 31, 2023, 2022, and 2021 are summarized as follows:
| 2023 | 2022 | 2021 | Depreciable Life - Years |
|---|
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the accumulated depreciation for property and equipment as of December 31, 2021, was $872,000. This figure represents the total depreciation recognized on Chem Dry's assets up to that point in time.
Accumulated depreciation is a contra-asset account that reduces the book value of assets on a company's balance sheet. It reflects the wear and tear, obsolescence, or usage of assets over their useful lives. The increase in accumulated depreciation from year to year is due to the depreciation expense recognized each year.
For a prospective Chem Dry franchisee, understanding accumulated depreciation can be helpful in assessing the financial health and asset management practices of the franchisor. It's important to note that these figures are presented in thousands of dollars (000s omitted), so the actual amounts are significantly larger than the numbers shown in the table.