What was the change in prepaid and other current assets for Gokhale Method in 2020?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
|
| 2021 | 2020 | ||
|---|---|---|---|
| Cash flows from operating activities: | 700 | ||
| Net income | 8 | 14,754 3 | 26.730 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities: | |||
| Changes in operating assets and liabilities | |||
| Accounts receivable | (1,597) | 19,896 | |
| Prepaid and other current assets | 428 | (429) | |
| Accounts payable | 1,921 | (7,925) | |
| Payable to teachers | 1,365 | ||
| Other current liabilities | 4 | (662) | |
| Deferred revenue | 1 | (8,423) | (16,752) |
| Net cash provided from operating activities | P 1 | 8,448 | 20,858 |
| Net increase in cash | 8,448 | 20,858 | |
| Cash and cash equivalents - beginning of year | 100 | 112,072 | 91,214 |
| Cash and cash equivalents - end of year | S | 120,520 $ | 112,072 |
| Supplemental disclosures of cash flow information: | |||
| Taxes paid | $ | 800 $ | 800 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the change in prepaid and other current assets in 2020 was a decrease of $429. This figure is part of the cash flow statement, reflecting changes in operating assets and liabilities. Prepaid assets typically include expenses paid in advance, such as insurance or rent, and the decrease suggests that Gokhale Method used more of these prepaid assets during the year than it acquired.
For a prospective franchisee, this detail provides insight into the company's financial management and cash flow dynamics. Monitoring changes in prepaid assets can help in understanding how Gokhale Method manages its short-term financial obligations and resources. A decrease in prepaid assets could indicate tighter expense management or changes in payment schedules with vendors.
It's important to note that this is just one line item in the financial statements and should be considered in the context of the overall financial health of Gokhale Method. Reviewing trends over multiple years and comparing these figures to industry benchmarks can provide a more comprehensive understanding of the company's financial performance.