What is the total amount of current liabilities for Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | |
|---|---|
| ASSETS | |
| CURRENT ASSETS | |
| Cash and cash equivalents Accounts receivable, net | $ 120,141 3,958 |
| TOTAL ASSETS | $ 124,099 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| CURRENT LIABILITIES | |
| Accounts payable and other current liabilities Deferred revenue | $ 6,667 8,086 |
| Total liabilities | 14,753 |
| STOCKHOLDERS' 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 | 100,657 |
| Retained earnings | 8,684 |
| Total stockholders' equity | 109,346 |
| TOTAL LIABILITIES & STOCKHOL |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the company's total current liabilities in 2022 amounted to $14,753. This figure is derived from the sum of 'Accounts payable and other current liabilities' totaling $6,667 and 'Deferred revenue' of $8,086.
For a prospective Gokhale Method franchisee, understanding the current liabilities of the company provides insight into its short-term financial obligations. Current liabilities are debts or obligations that are due within one year. These liabilities include accounts payable, which are short-term debts owed to suppliers or vendors, and deferred revenue, which represents payments received for services or products that have not yet been delivered or rendered.
The level of current liabilities can indicate the company's ability to meet its short-term obligations. A high level of current liabilities relative to current assets may suggest potential liquidity issues. However, in the case of Gokhale Method, the total current liabilities appear to be relatively low compared to the company's total assets of $124,099 for the same period, suggesting a stable short-term financial position.
It is important for potential franchisees to review these figures in the context of the company's overall financial health and to compare them to industry benchmarks. Consulting with a financial advisor to analyze these financial statements is advisable to fully understand the implications for the franchisee's investment.