Inventory: Inventory and Red Robin Essay

Submitted By yangxialin
Words: 360
Pages: 2
Open Document
Inventories
The primary inventory of both Denny’s and Red Robin is consisting of food and beverages, but Red Robin has supplies inventory in hand also that is 2/3 of its total inventory.
Inventory of both Denny’s and Red Robin is valued primarily at the lower of average cost or market, which means it use first-in, first-out ( FIFO) method to compute its inventory and cost of goods sold. Therefore, Denny’s assume that the dated purchases or inventories are sold first. Under this method, the inventory on balance sheet makes more sense or more accurate, but it may cause the COGS is lower than the average market value that makes the less accurate in Income statement.
During the year, Denny’s had about $2,890,000 inventories on hand that decreased from $3,438,000 in year 2011. The reason why the inventories decreased was that Denny’s sold lots of its stores and licenses to franchise and third parties. They still need to provide or sell its inventories to those franchises, but reducing on stores cause them to reduce their inventory which is food and beverage in hand. As the same reason, the cost of goods sold of Denny’s decreased from $61,017,000 to$49,025,000 during 2012.
In the food service industry, companies ran their business as purchase the inventories which are food and beverage and sell the inventories very soon. Therefore, Denny’s, as one of these companies, may not have many risks on inventory valuation. One of the risks they may need to face is the fluctuating
Show More

Related Documents: Inventory: Inventory and Red Robin Essay

Coummunity Research Essay

A Community in Need Peach County is the youngest county in the state of Georgia. It was created in 1924 by merging portions of Macon and Houston counties. Within the county are the cities of Fort Valley, Byron, and a small portion of Warner Robins. It became the 161st county of the state. The county is located approximately 100 miles south of Atlanta and 25 miles south of Macon. According to the 2010 U.S. Census, Peach County’s population was 27,695, which is an increase from the 2000 population…

Words 2986 - Pages 12

Snack industry in Hong Kong Essay

beverages, food and other packaged food imported from Japan and other regions of the world. In the year, 759 STORE gradually introduced characteristic domestic goods including kitchen supplies and household goods mainly from Japan. Running with high inventory turnover rate, 759 STORE aimed to give desirable service to vast local Hong Kong residents, providing a relaxing shopping environment with wide range of products for our customers to choose. 7) Company Ownership Executive Directors Mr. Lam…

Words 6273 - Pages 26

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960

Cosmetic Industry Analysis Essay

Introduction Global economy had experienced the worst recession in decades during 2008 till 2009 (Nouriel, 2009). Fear and panic were surrounded among people. During those days, the main headline of newspaper is about share market decreasing, industrial growth decreasing, and overall instability of the economy. Rumors are thick and flying, as a result, it create more fear among people and households about their savings and hard earned income. Most countries are affected by the recession, especially…

Words 28090 - Pages 113