What was the change in accounts receivable for Gokhale Method in 2020?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
NOTE 4 – SUBSEQUENT EVENTS
Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are issued or are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including estimates inherent in the process of preparing the financial statements. The Company's financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before the financial statements are issued or are available to be issued.
Management has evaluated subsequent events through May 31, 2023, the date on which the financial statements were available to be issued.
GOKHALE METHOD INSTITUTE, INC.
FINANCIAL STATEMENTS
For the Years Ended December 31, 2021 and 2020
with
INDEPENDENT AUDITORS' REPORT THEREON
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statements of Gokhale Method Institute, Inc. include balance sheets as of December 31, 2021, and 2020. However, the provided excerpts do not include the specific values for accounts receivable for either of these years.
While the FDD mentions that accounts receivable primarily consists of net royalty receivables from franchises, teachers, or class fees collected by GME, it does not provide the actual figures. Without these figures, it is impossible to calculate the change in accounts receivable for Gokhale Method in 2020.
A prospective franchisee should ask Gokhale Method for the specific accounts receivable values for 2020 and 2021 to understand the company's financial performance and trends in revenue collection. This information is crucial for assessing the financial health and stability of the franchise system.