What was the cash and cash equivalents at the end of the year for Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | ||
|---|---|---|
| Cash flows from operating activities: | ||
| Net loss | $ | (1,135) |
| Adjustments to reconcile net loss to net | ||
| cash provided by operating activities: | ||
| Changes in operating assets and liabilities | ||
| Accounts receivable | 983 | |
| Accounts payable and other current liabilities | (3,488) | |
| Deferred revenue | 18 | 3,261 |
| Net cash used in operating activities | - | (379) |
| Net decrease in cash | (379) | |
| Cash and cash equivalents - beginning of year | F | 120,520 |
| Cash and cash equivalents - end of year | $ | 120,141 |
| Supplemental disclosures of cash flow information: | ||
| Taxes paid | $ | 8 |
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 2022 was $120,141. This figure represents the amount of readily available funds Gokhale Method had at its disposal at the close of the fiscal year. These funds are crucial for covering immediate expenses, managing unforeseen financial challenges, and investing in potential growth opportunities.
For a prospective franchisee, understanding the franchisor's cash position is essential. A healthy cash balance suggests financial stability and the ability to support franchisees during their initial setup and ongoing operations. It indicates that Gokhale Method is likely capable of investing in marketing, training, and other resources that benefit the entire franchise system.
However, it is important to note that cash and cash equivalents represent just one aspect of Gokhale Method's overall financial health. A prospective franchisee should also consider other financial metrics, such as revenues, expenses, and debt levels, to gain a comprehensive understanding of the franchisor's financial performance and stability. Reviewing the complete audited financial statements, including the balance sheet, income statement, and cash flow statement, is highly recommended to assess the long-term viability of the franchise opportunity.