You have seen a typical structure for a common type of pro forma model in the DG
Question:
You have seen a typical structure for a common type of pro forma model in the DG RX model. Develop the structure and the specific variables for the Dollar General Solar Panel project. I want no numerical estimates and no numbers; I only want the specific variable you are including in your model and then I need to see that you have structured your model's variables to be ready to compute free cash flow (as you saw in the videoExplain the DG RX pro forma spreadsheetin your resources); again, do no computations and show no numbers.
- The point of having no numbers is to be able to think without numbers. Executives will ask you why? They will want your explanations. They will want to see that your model is set up correctly. All of this happens before the first number is entered into your spreadsheet.
Use the knowledge you have and credible sources to assess and justify all of the specific variables (not numbers) to include in the pro forma model and the structure of the model.
- Part A:Think through each element of the free cash flow equation. Document that you used your network at least once to obtain credible justification for one of your variables. Why? Executives expect you to grow your network. Justify the remaining variables using credible sources besides your network.
INFORMATION GIVEN:
SG&A has been increasing year over year which results in reduced operating income.
Our Operation Change Model purpose is to reduce operating expenses and ultimately increase income.
Implementing Solar Energy System at 50 stores in Florida over the course of the next 5 years.
Dollar General among the Top 10 solar powered companies in the United States - a great marketing opportunity!
Organizational Behaviour Concepts Controversies Applications
ISBN: 978-0132310314
6th Canadian Edition
Authors: Nancy Langton, Stephen P. Robbins, Timothy A. Judge, Katherine Breward