What was the net book value of vehicles owned by Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, 2023 | Cost | Accumulated Depreciation | Net Book Value | |
|---|---|---|---|---|
| Office Equipment | $ 80,613 | $ 80,613 | $ | - |
| Furniture and Fixtures | 19,863 | 19,863 | - | |
| Leasehold Improvements | 11,415 | 11,415 | - | |
| Vehicles | 202,688 | 21,737 | 180,951 | |
| $ 314,579 | $ 133,628 | $ | 180,951 | |
| As of December 31, 2022 | Cost | Accumulated Depreciation | Net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the net book value of vehicles as of December 31, 2022, was $101,667. The original cost of the vehicles was $215,039, but after accumulated depreciation of $113,372 was factored in, the net book value was calculated to be $101,667.
For a prospective franchisee, this figure represents the depreciated value of vehicles owned by Craters & Freighters at the end of 2022. It reflects the accounting value of the vehicles after considering wear and tear over time. This number is relevant in understanding the company's asset values and how they are depreciated for accounting purposes.
It's important to note that the net book value is an accounting measure and may not reflect the actual market value of the vehicles. Factors such as market conditions, vehicle condition, and demand could influence the real value. Franchisees should consider this information in the context of the overall financial health and asset management practices of Craters & Freighters.