What was the total stockholders' equity for Gokhale Method in 2020?
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 stockholders' equity in 2020 was $95,727. This figure represents the net worth of the company from the perspective of its shareholders, calculated by subtracting total liabilities from total assets. It includes common stock, additional paid-in capital, and retained earnings (or accumulated deficit).
For a prospective Gokhale Method franchisee, this number provides insight into the financial stability and capitalization of the company during that year. A higher stockholders' equity generally indicates a stronger financial position. It is important to note that this figure is a snapshot in time and can change significantly from year to year based on the company's performance and financial decisions.
When evaluating the financial health of Gokhale Method, potential franchisees should also consider other financial metrics and trends over multiple years. Reviewing the balance sheets for subsequent years, such as 2021 where the total stockholders' equity was $110,481, can provide a more comprehensive understanding of the company's financial trajectory. Additionally, comparing these figures to industry benchmarks can help assess Gokhale Method's relative financial performance.