What was the accumulated depreciation for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
i LLP
Denver, Colorado April 10, 2024
Balance Sheets
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 6,991,649 $ | 2,376,316 |
| Marketable Securities - At Fair Market Value | 634,869 | 528,625 |
| Accounts Receivable - Net of Allowance for | ||
| Credit Losses of $50,000 and $40,000, Respectively | 569,660 | 717,990 |
| Prepaid Expenses | 201,226 | 34,611 |
| Total Current Assets | 8,397,404 | 3,657,542 |
| Property and Equipment - At Cost: | ||
| Office Equipment | 80,614 | 80,613 |
| Furniture and Fixtures | 19,862 | 19,863 |
| Leasehold Improvements | 11,415 | 11,415 |
| Vehicles | 202,688 | 215,039 |
| 314,579 | 326,930 | |
| Less: Accumulated Depreciation | (133,628) | (225,263) |
| Property and Equipment - Net | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's balance sheet as of December 31, 2023, shows accumulated depreciation related to property and equipment. The total accumulated depreciation was $133,628. This figure is subtracted from the total cost of property and equipment ($314,579) to arrive at a net book value of $180,951.
Specifically, the accumulated depreciation includes depreciation on office equipment ($80,613), furniture and fixtures ($19,863), leasehold improvements ($11,415), and vehicles ($21,737). It's important to note that while the cost of vehicles was $202,688, a significant portion of the depreciation is attributed to them.
Prospective franchisees should understand that depreciation is a non-cash expense that reflects the reduction in value of assets over time. Reviewing these figures can help in assessing the net value of Craters & Freighters' assets and understanding how depreciation impacts their financial statements. Understanding these values can be helpful for a franchisee when projecting their own potential expenses and asset valuation.