What was the change in accounts payable and other current liabilities 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 change in accounts payable and other current liabilities in 2022 was a decrease of $3,488. This figure is part of the cash flow statement, which reconciles net loss to net cash used in operating activities.
This decrease suggests that Gokhale Method used more cash than it received from its accounts payable and other current liabilities during the year. This could be due to paying off outstanding debts or a reduction in short-term obligations.
For a prospective franchisee, this information provides insight into how Gokhale Method manages its short-term liabilities and working capital. While a decrease in accounts payable might seem negative, it could also indicate efficient financial management and a reduction in outstanding obligations.