What was the change in prepaid and other current assets for Gokhale Method in 2021?
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 prepaid and other current assets increased by $428 in 2021, compared to a decrease of $429 in 2020. This indicates a shift in how Gokhale Method managed its short-term assets during that period.
For a prospective franchisee, this detail from the balance sheets provides insight into the company's financial management and operational efficiency. Prepaid assets are payments made for goods or services to be received in the future, while other current assets can include items like inventory or short-term investments. The change from a decrease to an increase suggests Gokhale Method may have altered its purchasing or investment strategies.
Understanding these changes can help a franchisee assess the financial stability and management practices of Gokhale Method. While a single line item doesn't tell the whole story, it contributes to a broader understanding of the company's financial health. It would be prudent for a potential franchisee to inquire about the reasons behind these changes and how they might impact the franchisee's operations and financial obligations.
It's important to note that this information is part of a larger set of financial statements, and a comprehensive review by a financial professional is recommended to fully understand the implications. This includes analyzing trends over multiple years and comparing Gokhale Method's financial performance to industry benchmarks.