What was the total amount of liabilities 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 total liabilities for the company in 2023 were $57,447. This figure represents the sum of accounts payable and other current liabilities, which amounted to $8,491, and deferred revenue, which totaled $48,956.
Understanding the liabilities of Gokhale Method is crucial for potential franchisees as it provides insight into the company's financial obligations and stability. Liabilities are what the company owes to others, including suppliers, lenders, and customers. A high level of liabilities compared to assets could indicate financial strain, while a lower level might suggest better financial health.
For a prospective Gokhale Method franchisee, this information is essential for assessing the financial risk associated with investing in the franchise. It's advisable to compare these figures with previous years and industry benchmarks to determine if the liability levels are reasonable and sustainable. Additionally, reviewing the breakdown of liabilities can offer a clearer picture of where the company's financial obligations lie and whether there are any potential areas of concern.