What was the amount of retained earnings for Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | |
|---|---|
| ASSETS | |
| CURRENT ASSETS | |
| Cash and cash equivalents Accounts receivable, net | $ 120,141 3,958 |
| TOTAL ASSETS | $ 124,099 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| CURRENT LIABILITIES | |
| Accounts payable and other current liabilities Deferred revenue | $ 6,667 8,086 |
| Total liabilities | 14,753 |
| STOCKHOLDERS' EQUITY | |
| Common stock (1,000 voting shares authorized, 500 shares issued and outstanding, $0.01 par value) | 5 |
| Common stock (1,000 non-voting shares authorized, no shares issued and outstanding, $0.01 par value) | |
| Additional paid in capital | 100,657 |
| Retained earnings | 8,684 |
| Total stockholders' equity | 109,346 |
| TOTAL LIABILITIES & STOCKHOLDE |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method FDD, the company's retained earnings at the end of 2022 were $8,684. Retained earnings represent the accumulated net income of the company that has not been distributed to shareholders as dividends. It is an important indicator of the company's financial health and profitability.
For a prospective Gokhale Method franchisee, this figure provides insight into the financial stability of the franchisor. A positive retained earnings balance suggests that the company has been profitable over time and has managed its finances effectively. This can be reassuring for franchisees who are considering investing in the Gokhale Method system.
However, it's important to consider this figure in conjunction with other financial metrics and information provided in the FDD. Factors such as the company's revenue, expenses, and liabilities should also be taken into account to get a comprehensive understanding of its financial condition. Additionally, prospective franchisees should consult with a financial advisor to assess the financial risks and opportunities associated with investing in a Gokhale Method franchise.