What was the total amount of accumulated depreciation for Kitchen Solvers as of December 31, 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
al statements as a whole.
Hancock & Robinson CPAs
La Crosse, Wisconsin
March 7, 2025
Balance Sheets
December 31, 2024, 2023, and 2022
| Assets | 2024 | 2023 | 2022 |
|---|---|---|---|
| Current assets: | |||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 |
| Accounts receivable | 63,672 | 138,673 | 140,562 |
| Accounts receivable - related party | 174,152 | - | - |
| Contract assets - Current | 138,404 | 118,404 | 98,129 |
| Advances receivable | - | - | 74,472 |
| Other receivable | - | - | 3,260 |
| Inventory | 28,642 | 14,106 | - |
| Prepaid expenses | 2,277 | 2,293 | - |
| Total current assets | 817,083 | 466,017 | 377,131 |
| Property and equipment: | |||
| Equipment and fixtures | 34,201 | 34,201 | 34,201 |
| Technology equipment and software | 109,640 | 109,640 | 109,640 |
| Machinery and equipment | 86,429 | 73,253 | - |
| Vehicles | 6,500 | - | - |
| Leasehold improvements | 33,841 | - | - |
| Totals | 270,611 | 217,094 | 143,841 |
| Less - Accumulated depreciation | (156,768) | (145,888) | (139,333) |
| Net property and equipment | 113,843 | 71,206 | 4,508 |
| Other assets: | |||
| Territory held for sale | 12,798 | 12,798 | 12,798 |
| Contract assets | 787,811 | 746,214 | 659,193 |
| Right of use asset - Operating leases | 13,203 | 53,324 | 63,586 |
| Goodwill | 366,651 | 366,651 | 366,651 |
| Total other assets | 1,180,463 | 1,178,987 | 1,102,228 |
| TOTAL ASSETS | $ 2,111,389 | $ 1,716,210 | $ 1,483,867 |
| Liabilities and Members' Equity | |||
| Current liabilities: | |||
| Accounts payable | $ 53,515 | $ 21,944 | $ 60,760 |
| Accrued and other liabilities | 25,258 | 7,452 | 7,452 |
| Note payable - Shareholder | 4,378 | 1,923 | 18,049 |
| Current portion of long-term note payable | 19,940 | 18,523 | - |
| Deferred revenue | 88,310 | 76,042 | - |
| Contract liabilities - Current | 257,082 | 210,682 | 193,047 |
| Operating lease liability - Current | 13,578 | 39,479 | 30,861 |
| Total current liabilities | 462,061 | 376,045 | 310,169 |
| Long-term liabilities: | |||
| Contract liabilities | 1,419,466 | 1,236,455 | 1,082,638 |
| Long-term note payable - Less current maturities | 5,217 | 25,157 | - |
| Operating lease liability | - | 13,578 | 32,725 |
| Total long-term liabilities | 1,424,683 | 1,275,190 | 1,115,363 |
| Total liabilities | 1,886,744 | 1,651,235 | 1,425,532 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total accumulated depreciation as of December 31, 2022, was $139,333. This figure reflects the cumulative depreciation of Kitchen Solvers' property and equipment up to that date. Accumulated depreciation is a contra-asset account that reduces the net book value of assets on the balance sheet.
For a prospective Kitchen Solvers franchisee, understanding accumulated depreciation is crucial for assessing the financial health and asset management practices of the franchisor. It provides insight into how the franchisor values its assets and manages depreciation expenses over time. A significant increase in accumulated depreciation could indicate aging assets or a need for future capital expenditures.
This information is typically found on the balance sheet within the financial statements. Reviewing these figures over several years can reveal trends in Kitchen Solvers' asset utilization and investment strategies. Franchisees can use this data to benchmark against industry standards and evaluate the long-term sustainability of the franchise system.