ACCT 212 Individual Learning Project Questions

This document provides answers to various questions related to Denny's Corporation, including its name, headquarters, fiscal year end, primary products/services, stock market information, internet address, cash flow and retained earnings analysis, and more.

ACCT 212
INDIVIDUAL LEARNING PROJECTQUESTIONS
Name_______________________________
General Information:
1. What is the name of your corporation?Denny’s Corporation
2. Where are the corporate headquarters?Spartanburg, SC
3. What is the corporation’s fiscal year end?12/26/2018
4. What are the primary products or services of the corporation?Dennys sells items for
breakfast lunch and dinner. Waffles, pancakes, burgers, steak and coffee are all big
selling items.
5. Graph the high and low price of the company’s stock for each quarter of the last
two years. What was the high and what was the low?
6. Who is the company’s transfer agent and where are they located?Continental Stock
Transfer and trust. Located at 1 state Street, New York NY, 10004
7. Who are your company’s competitors?There are multiple competitors however
IHOP, Cracker Barrel and Waffle house give Dennys big competition.
Market Information:
8. On which stock exchange is your corporation’s stock traded?NASDAQ
9. What is the current market price of their stock?$19.00
10. What is the ticker symbol used to identify your corporation on the stock exchange?
DENN
Internet Information:
11. What is the Internet address of your corporation? Be sure it appears as a
hyperlink.https://www.dennys.com/??
utm_source=bing&utm_medium=cpc&utm_term={keyword}&utm_campaign=Bra
nded%7CDenny%27s+Only+E-&utm_content=qR1AsYPa|pcrid|{AdId}|pkw|
{keyword}|pmt|{MatchType}/
home&utm_source=bing&utm_medium=cpc&utm_term=denny
%27s&utm_campaign=27515545&utm_content=
%20string&kwid=25012563062&device=c&pcrid=80951566676006&pkw=denny
%27s&pmt=e&msclkid=1c1cae357aef1ec29756f2f649b82dd7&gclid=CN6GnLKY
7uECFYeSgQodEUMDfA&gclsrc=ds
12. Is the corporation’s Annual Report online?Yes
13. Are its financial statements on-line?Yes
14. Is your company listed on Annualreports.com?Yes
15. How long is your company’s 10-K report at the Securities and Exchange
Commission website (Edgar Database)? 84 pages.
Cash Flow and Retained Earnings:
Page 1 of 7

ACCT 212
16. List the amount of cash flows from each of the 3activities: Operating, Investing, and
Financing for the 2most recent years. What was the increase or decrease in cash for
each of these years?Operating 73,690. Investing 0 Financing 0. There was an
increase for operating but not investing or financing it stayed the same.
17. Were there any Non-Cash Investing/Financing Transactions? Describe the type and
amount. There are some non-cash expense/Finance Transactions. Administrative
expenses of $ 63,828000 expense incurred for the fiscal year 2018. Total
Depreciation and amortization is $27,039000 expense incurred for the fiscal year
2018.
18. What is the dollar difference between accrual net income and Cash provided by
Operations?
The difference between Accural Net Income and Cash Provided by Opeartions is
$29,921 (Accural Net Income = 43,693000 and Operating Income= $73,614000 of
the fiscal period 2018)
19. What investing activity provided the largest inflow of cash in the current year?
The company has Costs of franchise and license revenue of $ 218,247 which has provided
190.9% increase in sales in the fiscal year 2018. (Pg 25 under Franchise Operations)
20. What investing activity used the largest amount of cash in the current year?
The largest amount of cash included in investing activity in the fiscal year 2018 is capital
expenditures amounted to $ 22,025 thousands (Pg. F-7 under consolidated statement of
Cash flows)
21. What financing activity provided the largest inflow of cash in the current year?
Revolver borrowing sprovided largest casg inflow under finnaciang activity amounted to
$ 136,000 thousands (Pg. F-7 under consolidated statement of Cash flows)
22. What financing activity used the largest amount of cash in the current year?
The revolver payments of the company in fiscal year 2018 of financing activity is the
largest amount of cash is $108,500 thousands (Pg. F-7 under consolidated statement of
Cash flows)
23. Does the company have sufficient cash inflows from the appropriate category?
Describe any problems the company many experience with cash flow from your
analysis of the cash flow statement.
No, the company did not have sufficient cash inflows fro appropriate category except the
operating actovities. After analyzing the company’s cash flow it is observed that
company may experiencing some big issues with their cash flow particularly the
company may experience some issues in accordance with Capital expenditure part which
we can see the company has $22025 in red. The company should concentrate their
investing activity, which may support later. Further, revolver payment was significant at
$ 108,500 thousands. (Pg. F-7 under consolidated statement of Cash flows)
Page 2 of 7

ACCT 212
24. Show the change in Retained Earnings for the 2most recent years. What was net
income for each year? How much was paid out in dividends each year?
Changes in retailend earnings over 2016 to 2017 amounted to $(39594 – 19402) = $
20192 thousands and changes in retailend earnings over 2016 to 2017 amounted to
$(43693 – 39594) = $ 4099 thousands (Pg.23 under statement of Income)
25. Were the dividends on common stock and/or preferred stock? What was the amount
of each?
No cash dividends were paid by the company to its shareholders for the year ended 2018.
26. Did Retained Earnings change for any reasons other than net income or dividends?
Explain.
No, apart from net income, no other reasons were there for changes in the amount of
retained earnings (Pg.23 under statement of Income)
27. What classes of stock does your company have?
The company have common stock and treasury stock (Pg F-3, under Denny’s
Corporation and Subsidiaries Consolidated Balance Sheets)
28. How many shares of each class of stock are authorized, how many are issued, and
how many are outstanding?
The company have 135,000 shares of common stock authorized, 108,585 shares issued
and 61,533 shares iutstanding. Treasury stocks were 47,042 and 43,151 in numbers (Pg
F-3, under Denny’s Corporation and Subsidiaries Consolidated Balance Sheets)
29. Does your company have any treasury stock? How many shares and what dollar
amount?
Yes, the compny have treasury stock at cost, 47,042 and 43,151 respectively, amount for
which was - $ 416,815 thousands (Pg F-3, under Denny’s Corporation and Subsidiaries
Consolidated Balance Sheets)
30. What is the par or stated value of each of your company’s stocks?
Par value of common stock is $ 0.01 per share (Pg F-3, under Denny’s Corporation and
Subsidiaries Consolidated Balance Sheets)
Footnote Disclosures:
31. How many footnote disclosures does your company have?
There are 12 footnotes are present in annual report of fiscal Year 2018.
32. How many significant accounting policies are listed under its Summary of
Significant Accounting Policies?
There are 25 significant accounting policies present under the Company’s Summary of
Significant Accounting Policies.
33. What does it include as Cash and Cash Equivalents?
Page 3 of 7

ACCT 212
Cash and Cash equivalent part of the accounting policies of the company states that the
company is mainly interested in short-term highly liquid investments, which is not more
than three months of $0.4 million and $1.9 million respectively.
34. What method does it use to value Inventory?
The inventories consists of food and beverages and are valued primarily at lower costs
and done in net relizable value.
35. What method(s) does it use to depreciate its assets?
The company has used Straight-lined method for the evaluation of depreciation in
Property and market.
36. Does it have any leased assets? If yes, describe them
Yes, company does have lease assets. These lease assets have presented at lesser of its
fair value or the net present value. Company has adapted some lease improvement policy
for the betterment of the company.
.
37. What policies does it have in regard to Foreign Currency Translations?
There is no such policies mentioned in accounting policies in regardance with Foreign
Currency Transacrtions.
38. Describe any pending lawsuits in which it is involved.
No pending lawsuit is there against the company at present as mentioned in the
annual report.
39. Provide its Earnings per Share for the 2most recent years?
2017 - $ 0.58 & 2018 - $ 0.69 (Pg. F-4 under statemet of income)
Report of the Independent Auditor(s):
40. Who is/are your company’s auditor(s)?KPMG LLP
41. Where are they located?Greenville S.C
42. Does the auditor(s) give a qualified opinion, an unqualified opinion, a disclaimer of
opinion, or an adverse opinion? What does that opinion mean? Is it good?
The Auditor’s Report of annual report of 2018 gave a qualified opinion about the
company. As per the auditor’s report the company is in very good position
financially.Without making any kind of fraudelency while doing annual report of the
company is done which says that they have done business in last three years while
maintaining ehics (Pg F-2 under Report of Independent Registered Public Accounting
Firm)
43. What is the auditor’s responsibility in regard to the financial statements?
Auditor’s responsibility in regardance to financial statements include doing the financial
report without making or entering in any kind of fradulency and keeps transparency as
much as possible. The functions of the auditor also include to observe whether the
company has produced their financial statement with no opaqueness. Their work includes
absoloute assurance for the company’s financial statement
Page 4 of 7

ACCT 212
Page 5 of 7

ACCT 212
44. What is management’s responsibility in regard to the financial statements?
The management’s responsibility include in regardance for financial statement is to
maintain the decorm and keeping the control oin the company so that the company may
not face any such big issues. Management also looks after whether the assets and
liabilities is recorded correctly.
45. What financial statements were included in the auditor’s opinion?
In Auditor’s report, auditor has mentioned about the consolidated balance sheet and
income statement in auditor’s opinion(Pg F-2 under Report of Independent Registered
Public Accounting Firm)
46. Did the auditor believe that the statements were presented fairly?
The Auditor did believe that the statements were presented fairly without making any
kind of fradulency (Pg F-2 under Report of Independent Registered Public Accounting
Firm)
Management’s Report:
47. Who bears the responsibility for the integrity and the objectivity of the financial
statements?Management pg 13 Financial report.
48. What does management say they are doing to assure the public that the financial
information is reliable? Pg. 14 Have local managers managing individual strores.
They have internal and external auditors that are checking reports.
49. What is the responsibility of the Audit Committee of the Board of Directors?
Assist the board with fulfilling responsibilities toward shareholders, potential
shareholders, and investment community to oversee the companies finances. Source
Denny’s Corporation Board of Directors Audit and Finance Committee Charter.
Page 6 of 7

ACCT 212
Analysis: (use Excel to complete this section)
50. Provide common-size analysis of your company’s income statement and balance
sheet for the 2most recent years(must be done using Excel with formulas).
Refer to the excel sheet
51. Provide horizontal analysis of your company’s income statement and balance sheet,
showing the dollar amount and percent of change using the 2most recent years (you
must use an Excel spreadsheet with formulas).
Refer to the excel sheet
52. Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on
page 544 of your text (these must be in an Excel spreadsheet, using formulas to
calculate the ratios). You should present them in a similar format as the text: group
by category, list name of ratio, formula in words, and the ratio calculation. Give a
short explanation of your conclusions about your company after each category of
ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc).
Refer to excel sheet
Conclusions:
53. Are you optimistic or pessimistic regarding the future of your chosen corporation?
Explain.
Yes, I am optimistic regarding the future of Denny’s. After analyzing the annual
report of the company for the fiscal year 2018 the company is having a great time
in regardance of company’s balance sheet and income statement. According to the
annual report of 2018 the company has a great cash fklow. Both shows a good
indication for the company.
54. Would you invest in the stock of the company? Explain.
Yes, I would like to invest in the company’s stock because the company higher
growing trend, which will prove profitable for me. The company has also transform
their stock policies. From the annual report we can see that the growing chart for
the company is upward rising, which is a good sign for me as a stockholder for the
company.
55. Would you invest in the bonds of the company? Explain.
No, I will not invest in the bonds of the company as though the profitability position
of the company is good and it has sufficient amount to meet the interest expenses,
significantly low current ratio and acid test ratio and high leverage ratio is
indicating that the company may not be sustrainable for the long term. To acceot the
risk the return must be high which is not possible through purchasing the bond of
Denny’s Corporation.
Page 7 of 7