What were the retained earnings for Gokhale Method in 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 2023 | |
|---|---|
| ASSETS | |
| Cash and cash equivalents Accounts receivable, net | $ 154,584 15,944 |
| TOTAL ASSETS | $ 170,528 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| LIABILITIES Accounts payable and other current liabilities Deferred revenue | $ 8,491 48,956 |
| Total liabilities | 57,447 |
| STOCKHOLDER'S EQUITY Common stock (1,000 voting shares authorized, 500 shares issued and outstanding, $0.01 par value) | 5 |
| Common stock (1,000 non-voting shares authorized, no shares issued and outstanding, $0.01 par value) | - |
| Additional paid in capital Retained earnings | 100,657 12,419 |
| Total stockholder's equity | 113,081 |
| TOTAL LIABILITIES & STOCKHOLDER'S EQ |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the company's retained earnings at the end of 2023 were $12,419. This figure represents the accumulated net income of Gokhale Method that has been retained in the business rather than distributed as dividends to its stockholder.
Retained earnings are a key indicator of a company's financial health and profitability. A positive retained earnings balance suggests that Gokhale Method has been profitable over time and has reinvested its earnings back into the business. For a prospective franchisee, this can be a reassuring sign, indicating that the company is financially stable.
It's important to note that while retained earnings provide a snapshot of past financial performance, they do not guarantee future success. Franchisees should consider this figure in conjunction with other financial metrics and business factors when evaluating the Gokhale Method franchise opportunity. Reviewing the complete financial statements and understanding the trends in retained earnings over several years would provide a more comprehensive view of the company's financial stability and growth potential.