What was the net book value of vehicles owned by Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
in the valuation methodology from the prior year.
Notes to Financial Statements
Note 3: Property and Equipment
| As of December 31, 2023 | Cost | Accumulated Depreciation | Net Book Value | |
|---|---|---|---|---|
| Office Equipment | $ 80,613 | $ 80,613 | $ | - |
| Furniture and Fixtures | 19,863 |
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, 2023, was $180,951. The original cost of the vehicles was $202,688, with accumulated depreciation of $21,737.
The net book value represents the historical cost of the vehicles less any accumulated depreciation. Depreciation is the allocation of the cost of an asset over its useful life. This figure is an accounting measure of the vehicle's value on Craters & Freighters' balance sheet.
For a prospective franchisee, understanding the net book value of assets like vehicles can be useful in assessing the overall financial health and capital investment of Craters & Freighters. It provides insight into the company's asset management and depreciation practices. However, it is important to note that net book value may not reflect the actual market value of the vehicles.