What was the accumulated depreciation and amortization for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
balances are expensed against the allowance.
Inventory:
Inventory consists of Company owned franchise food, beverage, and packing, and is stated at the lower of cost or net realizable value, determined on the first-in, first-out basis.
Property and Equipment:
Property and equipment are carried at cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewal costs are charged to operations as incurred; major renewals or improvements over $5,000 are capitalized. Upon sale or retirement of property and equipment, the Company removes the related costs and accumulated depreciation from the accounts and any gain or loss is included in the results of current operations. Depreciation is computed on a straight-l
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, I am unable to provide the exact accumulated depreciation and amortization for Golden Krust Caribbean Restaurant in 2021. While the document includes financial statements and notes, it does not explicitly list this specific figure.
However, the FDD does provide context on how Golden Krust Caribbean Restaurant handles depreciation and amortization. Note 2, titled "Summary of Significant Accounting Policies," states that property and equipment are carried at cost less accumulated depreciation and amortization. It also mentions that depreciation is computed using the straight-line method over the estimated useful life of the assets, typically ranging from five to ten years, and that leasehold improvements are amortized over the shorter of the lease term or the asset's useful life. This information is useful in understanding the company's accounting practices.
A prospective franchisee should inquire directly with Golden Krust Caribbean Restaurant's management or accounting team to obtain the specific accumulated depreciation and amortization figures for 2021. This information would be helpful in assessing the company's financial health and understanding how its assets are depreciating over time. Additionally, it would be prudent to seek professional financial advice to fully interpret these figures and their implications for your investment.