What was the amount of cash and cash equivalents held by the Gokhale Method in 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 2023 | ||
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | $ | 3,735 |
| Adjustments to reconcile net income to net | ||
| cash provided by operating activities: | ||
| Changes in operating assets and liabilities | ||
| Accounts receivable | (11,987) | |
| Accounts payable and other current liabilities | 1,825 | |
| Deferred revenue | 40,870 | |
| Net cash provided by operating activities | 34,443 | |
| Net increase in cash | 34,443 | |
| Cash and cash equivalents - beginning of year | 120,141 | |
| Cash and cash equivalents - end of year | $ | 154,584 |
| Supplemental disclosures of cash flow information: | ||
| Taxes paid | $ | 800 |
| Interest paid | $ | - |
| int |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 FDD, Gokhale Method's cash and cash equivalents at the end of 2023 totaled $154,584. This figure represents the company's liquid assets available for immediate use, reflecting its financial position at the close of the fiscal year. The beginning cash and cash equivalents for 2023 was $120,141. This indicates an increase of $34,443 in cash and cash equivalents during the year.
This increase in cash is derived from operating activities. The net income for 2023 was $3,735, which was adjusted by changes in operating assets and liabilities. Specifically, accounts receivable decreased by $11,987, while accounts payable and other current liabilities increased by $1,825, and deferred revenue increased by $40,870. These adjustments resulted in net cash provided by operating activities of $34,443.
For a prospective franchisee, this information is crucial in assessing the financial health and stability of Gokhale Method. A healthy cash balance suggests that the company has sufficient resources to meet its short-term obligations and invest in future growth. The increase in cash from operating activities indicates that the business model is generating positive cash flow, which is a positive sign for potential franchisees. Reviewing these figures over several years, if available, would provide a more comprehensive understanding of the company's financial performance and trends.