What was the total stockholders' equity 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 & STOCKHOLDE |
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 at the end of 2022 was $109,346. This figure represents the net worth of the company from the perspective of its stockholders, calculated by subtracting total liabilities from total assets. It includes common stock, additional paid-in capital, and retained earnings.
Specifically, the common stock consisted of $5, additional paid in capital was $100,657, and retained earnings amounted to $8,684. These components, when combined, resulted in the total stockholders' equity of $109,346. This metric is a key indicator of the company's financial health and stability.
A prospective Gokhale Method franchisee should consider the stockholders' equity in relation to other financial metrics, such as revenue and liabilities, to gain a comprehensive understanding of the company's financial standing. Reviewing trends in stockholders' equity over several years can also provide insights into the company's financial performance and its ability to generate value for its owners. This information is crucial for assessing the financial risk and potential return on investment associated with a Gokhale Method franchise.