What was the loss on disposal of fixed assets for Chesters in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
LOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| CASH FLOWS FROM OPERATING ACTIVITIES | _ | _ | |
|---|---|---|---|
| Net income | $ (69,699) | $ | 2,582,783 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the loss on disposal of fixed assets in 2024 was $9,969. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities in the statements of cash flows.
For a prospective franchisee, this number reflects a loss incurred by Chesters when disposing of fixed assets such as equipment, furniture, or vehicles. This loss is a non-cash expense, meaning it doesn't represent an actual outflow of cash but rather an accounting adjustment to reflect the reduced value of the disposed assets.
The loss on disposal of fixed assets is added back to net income when calculating cash flow from operations because it reduced net income without reducing cash. In 2023, there was no loss on disposal of fixed assets, as indicated by a dash (-) in the corresponding column.