What was the net decrease in cash for Gokhale Method in 2022?

According to Gokhale Method's 2024 Franchise Disclosure Document, the net decrease in cash for the company in 2022 was $379. This figure represents the overall reduction in Gokhale Method's cash and cash equivalents during the fiscal year. It is important to note that this decrease reflects the net effect of all cash inflows and outflows, including operating, investing, and financing activities.

Specifically, the provided table within the FDD outlines the cash flows from operating activities, which include a net loss of $1,135. Adjustments were made to reconcile this net loss to the net cash used in operating activities. These adjustments include changes in operating assets and liabilities such as accounts receivable ($983), accounts payable and other current liabilities (-$3,488), and deferred revenue ($3,261). The net cash used in operating activities amounted to ($379), which directly corresponds to the net decrease in cash for the year.

For a prospective franchisee, understanding the cash flow dynamics of Gokhale Method is crucial. While a decrease in cash might raise concerns, it is essential to analyze the underlying factors contributing to this decrease. In this case, the decrease appears to be primarily driven by operating activities, influenced by changes in accounts payable, receivables, and deferred revenue. A potential franchisee should investigate further to understand the reasons behind these changes and assess whether they are indicative of broader financial trends or specific one-time events. Additionally, the franchisee should consider the beginning and ending cash balances ($120,520 and $120,141, respectively) to evaluate the overall liquidity position of Gokhale Method.