What was the net income 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 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the net income for 2020 was $26,730. This figure is part of the cash flow statement, which reconciles net income to net cash provided by operating activities.
For a prospective franchisee, net income indicates the profitability of Gokhale Method's operations during that year. It's a key metric for assessing the financial health and stability of the company. However, it's important to note that this net income is specifically for Gokhale Method Institute, Inc., and may not directly reflect the potential profitability of an individual franchise.
The document also includes adjustments to reconcile net income to net cash, such as changes in accounts receivable ($19,896), prepaid and other current assets (-$429), accounts payable (-$7,925), and other current liabilities (-$662). These adjustments provide a more comprehensive view of the cash flow generated by Gokhale Method's operations.
Prospective franchisees should consider this net income figure in conjunction with other financial data and factors, such as initial investment costs, ongoing fees, and market conditions, to evaluate the potential return on investment for a Gokhale Method franchise. Consulting with a financial advisor is recommended to fully understand the financial implications.