What was the cash and cash equivalents amount for Gokhale Method in 2021?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
|
| 2021 | 2020 | ||
|---|---|---|---|
| Cash flows from operating activities: | 700 | ||
| Net income | 8 | 14,754 3 | 26.730 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities: | |||
| Changes in operating assets and liabilities | |||
| Accounts receivable | (1,597) | 19,896 | |
| Prepaid and other current assets | 428 | (429) | |
| Accounts payable | 1,921 | (7,925) | |
| Payable to teachers | 1,365 | ||
| Other current liabilities | 4 | (662) | |
| Deferred revenue | 1 | (8,423) | (16,752) |
| Net cash provided from operating activities | P 1 | 8,448 | 20,858 |
| Net increase in cash | 8,448 | 20,858 | |
| Cash and cash equivalents - beginning of year | 100 | 112,072 | 91,214 |
| Cash and cash equivalents - end of year | S | 120,520 $ | 112,072 |
| Supplemental disclosures of cash flow information: | |||
| Taxes paid | $ | 800 $ | 800 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the cash and cash equivalents at the end of the year 2021 was $120,520. This is compared to $112,072 at the end of 2020. This figure represents the amount of readily available funds Gokhale Method had on hand to cover immediate obligations and investments.
Cash and cash equivalents are defined as highly liquid investments with original maturities of three months or less. These funds are crucial for covering short-term liabilities, managing unexpected expenses, and funding day-to-day operational needs. The increase in cash and cash equivalents from 2020 to 2021 indicates that Gokhale Method improved its liquidity position during that period.
For a prospective franchisee, understanding the franchisor's cash position is important. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the franchisor's capacity to invest in new initiatives, marketing, and other resources that benefit the franchise system. However, it is essential to consider these figures in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the franchisor's financial health.