What was the total liabilities and stockholder's equity 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 and stockholder's equity for the company in 2023 was $170,528. This figure represents the sum of all the company's obligations to creditors (liabilities) and the value of the owners' stake in the company (stockholder's equity) at the end of the fiscal year. Liabilities include accounts payable and other current liabilities totaling $8,491 and deferred revenue of $48,956, resulting in total liabilities of $57,447. Stockholder's equity consists of common stock valued at $5, additional paid-in capital of $100,657, and retained earnings of $12,419, resulting in total stockholder's equity of $113,081.
For a prospective Gokhale Method franchisee, understanding the company's financial structure is crucial. The liabilities and stockholder's equity balance provides a snapshot of the company's financial health and stability. A higher proportion of equity compared to liabilities generally indicates a stronger financial position, suggesting that the company relies more on its own funding rather than debt.
In the case of Gokhale Method, the total liabilities and stockholder's equity being equal to the total assets ($170,528) reflects the fundamental accounting equation: Assets = Liabilities + Equity. This balance sheet information can help a potential franchisee assess the financial risk associated with investing in a Gokhale Method franchise. It is advisable for franchisees to consult with a financial advisor to fully understand the implications of these figures and how they relate to the overall franchise opportunity.
It's important to note that these figures pertain specifically to Gokhale Method Institute, Inc., which is a wholly-owned subsidiary of Gokhale Method Enterprise, Inc. The financial performance of the parent company could also have an impact on the franchise system, but is not detailed here.