What was the total stockholders' equity for Gokhale Method at the end of December 31, 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| Common Stock Voting Shares | Common Stock Non-Voting Shares | Common Stock Amount | itional paid n capital | etained arnings | Total ockholders' Equity | ||
|---|---|---|---|---|---|---|---|
| Balance at January 1, 2022 | 500 | $ | 5 | $ 100,657 | $ 9,819 | $ 110,481 | |
| Net loss | - | - | (1,135) | (1,135) | |||
| Balance at December 31, 2022 | 500 | - | $ | 5 | $ 1 |
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 December 31, 2022, was $109,346. This figure represents the net worth of Gokhale Method 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.
For a prospective franchisee, this number provides insight into the financial stability and capitalization of Gokhale Method. A higher stockholders' equity generally indicates a stronger financial position, suggesting that the company has sufficient assets to cover its liabilities and has accumulated value for its owners. This can be reassuring for franchisees who are considering investing in the brand, as it implies that Gokhale Method is on solid financial footing.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks. While $109,346 in stockholders' equity provides a snapshot of the company's financial health at a specific point in time, it doesn't reveal the entire picture. Prospective franchisees should also review Gokhale Method's revenue, expenses, and cash flow statements to gain a more comprehensive understanding of its financial performance and sustainability. Additionally, comparing this figure to similar companies in the franchise industry can provide valuable context and help franchisees assess the relative strength of Gokhale Method's financial position.