What was the change in accounts receivable for Gokhale Method in 2021?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
lowance for Doubtful Accounts
Accounts receivable is primarily comprised of net royalty receivables from franchise, teachers, or class fees collected by GME.
The Company utilizes the allowance method of accounting for doubtful accounts. The allowance is based on management's review of all past due accounts. As of December 31, 2022, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statements for Gokhale Method Institute, Inc. include balance sheets as of December 31, 2021, and 2020. However, the excerpt does not provide the specific values for accounts receivable for either year. Instead, it indicates that accounts receivable primarily consist of net royalty receivables from franchises, teachers, or class fees collected by GME (Gokhale Method Enterprises, Inc.).
The FDD states that Gokhale Method utilizes the allowance method of accounting for doubtful accounts, based on management's review of past due accounts. The document notes that as of December 31, 2021, and 2020, management believed that all receivables were collectable after year end. This suggests that Gokhale Method did not have significant concerns about uncollectible accounts receivable during these periods.
Because the specific accounts receivable values are not disclosed in this excerpt, a prospective franchisee should ask Gokhale Method for the detailed balance sheets and income statements for 2020 and 2021 to fully understand the company's financial performance and the changes in its accounts receivable during that time.