What was the APIC amount for Gokhale Method as of December 31, 2020?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Common Stock | Common Stock | Common Stock | APIC | Stockholder's | Accumulated Retained | Total Stockholders' | |
|---|---|---|---|---|---|---|---|
| Voting Shares | Non-Voting Shares | Amount | Amount | Contribution | Earnings (Deficit) | Equity | |
| Balance at January 1, 2020 | 200 | 1 | S | S 74,995 | $ 25,662 | 74,995 $ 25,662 $ (31,665) $ 68,997 | $ 68,997 |
| Net income | 26,730 | 26,730 | |||||
| Balance at December 31, 2020 | 300 | v | 74,995 | 25,662 | (4,935) | 727.29 | |
| Net income | ì | r | 14,754 | 14,754 | |||
| Balance at December 31, 2021 | 200 | S | $ 74,995 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the Additional Paid-In Capital (APIC) as of December 31, 2020, was $25,662. This figure is part of the broader stockholder's equity information presented in the financial statements. Understanding the APIC is crucial for prospective franchisees as it reflects the capital raised by Gokhale Method through the sale of its stock above its par value. This provides insight into the company's financial structure and how it has been capitalized.
The balance sheet provides a snapshot of Gokhale Method's financial health, and the APIC is a component of the overall stockholder's equity. A higher APIC generally indicates that the company has been successful in raising capital, which can be used for expansion, research and development, or other business activities. For a franchisee, this can be a positive sign, suggesting that Gokhale Method has the financial resources to support its franchisees and invest in the brand.
However, it's important to consider the APIC in conjunction with other financial metrics, such as retained earnings, net income, and total stockholder's equity, to get a comprehensive understanding of Gokhale Method's financial condition. Reviewing these figures over several years, as presented in the provided table, can reveal trends and provide a more informed perspective on the company's financial stability and growth potential. Prospective franchisees should consult with a financial advisor to fully assess the implications of these financial figures.