What was the net cash provided from operating activities 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 net cash provided from operating activities in 2021 was $8,448. This indicates the cash flow generated from the company's core business operations during that year.
To arrive at this figure, Gokhale Method started with a net income of $14,754 and made several adjustments. These adjustments included changes in operating assets and liabilities, such as accounts receivable, prepaid and other current assets, accounts payable, payable to teachers, other current liabilities, and deferred revenue. For example, there was a decrease in accounts receivable of $1,597 and an increase in accounts payable of $1,921. Deferred revenue decreased by $8,423.
For a prospective franchisee, understanding the net cash provided from operating activities is crucial. It reflects the financial health and stability of Gokhale Method. A positive cash flow from operations suggests that the company is effectively managing its resources and generating sufficient cash to cover its operating expenses. This information, combined with other financial metrics, can help potential franchisees assess the overall viability and profitability of investing in a Gokhale Method franchise.