What is the net amount of accounts receivable for Gokhale Method as of 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounts Receivable and Allowance 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 of Gokhale Method Institute, Inc. were audited for the year ending December 31, 2023. Accounts receivable primarily consist of net royalty receivables from franchises, teachers, or class fees collected by GME (Gokhale Method Enterprises, Inc.).
The FDD does not explicitly state the net amount of accounts receivable for 2023. However, it does mention that management reviews past due accounts to determine an allowance for doubtful accounts. As of December 31, 2022, management believed all receivables were collectible after year end.
A prospective franchisee should inquire with Gokhale Method about the specific net amount of accounts receivable for 2023 to gain a clearer understanding of the company's financial health and the collectability of its receivables. Understanding the trend in accounts receivable and the allowance for doubtful accounts can provide insights into the financial stability and operational efficiency of Gokhale Method.