What was the total liabilities & stockholders' equity for Gokhale Method in 2021?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
22
| 2021 | 2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | S | 120,520 | 5 | 112,072 |
| Accounts receivable, net | 4,941 | 3,344 | ||
| Other current assets | - | - | 428 | |
| TOTAL ASSETS | S | 125,461 | S | 115,844 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | 5 | 8,652 | $ | 6,731 |
| Deferred revenue | 4,825 | 13,248 | ||
| Payable to Teachers | 1,365 | |||
| Other current liabilities | - | 138 | _ | 138 |
| TOTAL LIABILITIES | _ | 14,980 | 1 | 20,117 |
| STOCKHOLDERS' EQUITY | ||||
| Common stock (1,000 voting shares anthorized, 500 shares issued and | 5 | 5 | ||
| outstanding, $0.01 par value) | ||||
| Common stock (1,000 non-voting shares authorized, no shares issued | ||||
| and outstanding, $0.01 par value) | ||||
| Additional Paid in Capital | 74,995 | 74,995 | ||
| Stockholder's contribution | 25,662 | 25,662 | ||
| Retained earnings (accumulated deficit) | _ | 9,819 | (4,935) | |
| Total stockholders' equity | 110,481 | 95,727 | ||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUI |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the total liabilities and stockholders' equity in 2021 was $125,461. This figure represents the sum of all the company's obligations to creditors (liabilities) and the investment of the owners in the company (stockholders' equity) at the end of the 2021 fiscal year.
Specifically, the liabilities consisted of accounts payable totaling $8,652, deferred revenue of $4,825, payable to teachers amounting to $1,365, and other current liabilities of $138. The stockholders' equity included common stock valued at $5, additional paid-in capital of $74,995, stockholder's contribution of $25,662, and retained earnings of $9,819.
For a prospective franchisee, this information provides a snapshot of Gokhale Method's financial structure and health at that time. Understanding the breakdown between liabilities and equity can offer insights into how the company is financed and its ability to meet its obligations. Reviewing these figures over several years, as presented in the FDD, can reveal trends and potential areas of concern or strength.