What was the total stockholder's equity for the Gokhale Method as of 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 stockholder's equity as of December 31, 2023, was $113,081. 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 stockholder's equity is composed of several components. There is $5 in common stock from 500 voting shares issued and outstanding at $0.01 par value. Additionally, $100,657 is attributed to additional paid-in capital, which represents the amount investors paid above the par value for the stock. Finally, $12,419 is listed as retained earnings, which is the accumulated net income of the company that has not been distributed as dividends.
For a prospective franchisee, understanding the stockholder's equity can provide insight into the financial stability and structure of Gokhale Method. A positive and growing stockholder's equity generally indicates a healthy financial position. Reviewing these figures in comparison to previous years, if available, can further illustrate the company's financial trends and performance.