What was the cash and cash equivalents at the beginning of 2023 for Gokhale Method?
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 Gokhale Method Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2023 was $120,141. This figure represents the amount of readily available funds Gokhale Method had at the start of the fiscal year to cover immediate obligations and operational expenses.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the Gokhale Method's capacity to invest in system-wide improvements, marketing initiatives, and research and development, all of which can benefit franchisees.
However, it is important to note that this figure is a snapshot in time and does not reflect the entirety of Gokhale Method's financial health. A potential franchisee should review the complete financial statements, including the balance sheet, income statement, and statement of cash flows, to gain a comprehensive understanding of the franchisor's financial performance and stability. Additionally, comparing these figures with previous years and industry benchmarks can provide valuable insights.