Tropical Hut is one, if not the oldest, fast food joint in the Philippines.

It started in 1962 when the Que family had this idea of putting up a coffee shop within the confines of their supermarket, thus, Tropical Hut Hamburger was born. Now, it has more than 50 branches nationwide and still growing, proving that it can hold its stance in the fast food arena. Before Jollibee, before McDonald's, before Burger King, before anyone else, it seems, there is Tropical Hut Hamburger. And hamburger it is, indeed the best it could ever be. But that was long ago. Now, Tropical is just a vestige of its former self. Everyone suspects that their hamburger is where Jollibee's came from - They almost have the same taste. Their fried chicken is also just like Jollibee's, but this time it was Tropical who copied it. Tropical has other food selections, like Bistek (a local version of beef steak or strips) and other sandwiches. However, the place is not world class. It is not as clean or as well kept as McDonald's or Jollibee. And they have a very poor image. Although food is good

I. CHAPTER 1: EXECUTIVE SUMMARY

Tropical hut is one, if not the oldest, fast food joint in the Philippines. It started in 1962 when the Que family had this Idea of putting up a coffee shop within the confines of their supermarket, thus, Tropical Hut Hamburger was born. Now, it has more than 50 branches nationwide and still growing, proving that it can hold its stance in the fast food arena. In 1962, the business has grown into a grocery store and expanded rapidly into a Supermarket. It was also in this year that the concept of a Coffee Shop within the Supermarket was launched with the introduction of Tropical Hut Hamburger Today, THFMI has six (6) TH Supermarket branches, five (5) TH Drugstores, fifty-five (55) TH Hamburger outlets and four (4) 10/Q Convenience Stores to serve its variety of growing customers.

Pizza Hut as a company has always tried to target and satisfy various diverse customer categories in different countries depending upon various factors and situations.

CHAPTER II: BUSINESS REVIEW A. COMPANY HISTORY TROPICAL HUT Founded: 1962 Food: Hamburger, spaghetti, Fried Chicken, Local breakfasts, Salads, sandwiches, etc.

Website: http://www.facebook.com/tropicalhut#/tropicalhut Payment method: cash, visa, amex, master card Business hours: opens from 6:00 am to 9:00 pm * * Sat, Sun 6 am- 9 pm M, T,W, TH,F- 7 am- 9 pm Services: Delivery Specialty: Hamburgers and fries Tropical Hut Food Market, Inc. (THFMI) started its operation as a small sari-sari store and is owned by the Que family. In 1962, the business has grown into a grocery store and

expanded rapidly into a Supermarket. It was also in this year that the concept of a Coffee Shop within the Supermarket was launched with the introduction of Tropical Hut Hamburger: The Company was incorporated in February 1965. In 1972, Mercury group of Companies, Inc. acquired the Company with the introduction of a Drugstore within the Supermarket. Today, THFMI has six (6) TH Supermarket branches, five (5) TH Drugstores, fifty-five (55) TH Hamburger outlets and four (4) 10/Q Convenience Stores to serve its variety of growing customers. Tropical Hut is one, if not the oldest, fast food joint in the Philippines. It started in 1962 when the Que family had this Idea of putting up a coffee shop within the confines of their supermarket, thus, Tropical Hut Hamburger was born. Now, it has more than 50 branches nationwide and still growing, proving that it can hold its stance in the fast food arena.

CHAPTER III: ENVIRONMENTAL ANALYSIS A. INDUSTRY ANALYSIS 1. POLITICAL ENVIRONMENT There are government policies and requirements that are essential to establish the proposed business venture legally. These include the registration of business name with the Securities and Exchange Commission (SEC) as well as the clearance from the barangay within the business location. It is also important to have a dulynotarized leasecontract if the place of the business is rented. Business taxes that will be paid annually and business permits such as the sanitary permit for health and sanitation purposes, and fire clearance affect the operations of the business. Political issues include regulatory frame work operating in judicial system which may affect the business in different ways. There are not many political factors in Peshawar affecting Tropical Hut as is lack of competition. Factors such as laws on business employment, pollution and taxation apply on the organization which it has to follow regarding the rules.

2. ECONOMIC ENVIRONMENT

If the countys economy is better so the GDP of the country will be good, this is a green signal for the business as the per capita income of the people will being creased and they will spend more money. The researcher came to know that most of the people in the beginning of the months spend more and they visit tropical hut very often. When the inflation rate increases the cost of raw material also increases and this leads towards high prices of the products and vice versa.

3. SOCIAL ENVIRONMENT Tropical hut is a multinational and it is basically originated from America so the organization is overwhelmed by western culture. There are social forms of society which consist of Upper class, middle class, middle upper class, lower class and lower class. Every country has cultural norms, values, beliefs and religion which can affect the organization.

4. TECHNOLOGICAL ENVIRONMENT Now a days technology is improving so as baking and heating ovens will be of new and efficient technology and will provide efficient service. Due to new technology there are new ways of marketing like internet; telemarketing and the organization can advertise their products with much more faster pace. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. New vehicles will make their service more efficient

B. COMPETITOR ANALYSIS Characteristics | Competitors | Tropical Hut Type of Industry Logo Founded Website No.of outlets fast food Wendys fast food Burger King fast food Jollibee fast food Mc Donald fast food

1962
www.tropicalhut hamburger.com

1969
www.wendys hamburger.com

1953
www.burgerking.com

| 1975
www.jollibee.com

1940
www.mcdonalds.com

Head quarter

74 Elisco, Rd., Pasig City, ,Metro

6,650 stores all over the world Dublin, Ohio

12,000 all over the world

1,582 all over the world Plaza Bldg. F. Ortigas Jr. Road (formerly Emerald Avenue) Pasig City, Philippines Langhap, Sarap

33,379 all over the world and the country 16th Floor Citibank Centre,. Paseo de Roxas, Makati City

2/F Burger King Building 275 E. Rodriguez Senior Avenue, Quezon, Quezon

Positioning Statement

Ka Tropa

Eat great, even late

Have it your way

Love ko to |

C. KEY SUCCESS FACTORS Originality | Being unique- we have to consider how to differ with others. Order it off the menu and it'll come with melted pepper Jack cheese, spinach, tomato, and grilled mushrooms on a wheat bun, with a side of balsamic vinaigrette and fresh veggiesall for 540 calories, 13 grams of fat (5 grams saturated), and 1,340 milligrams of sodium. Promotional Strategies | Tropical Hut focused more to attract customers. The researchers proposed strategies like going to schools and joined school events and sell some products that will benefit to the students. Accessibility | Location should be place somewhere that could easily recognize and viewed by the customers. A big factor to considered is to be more visible the store nearby schools and much better if it is actually available within the premises. Having fastidious in culinary- before time to served, all of fresh foods must be prepared it by the chef or cook who have passed in the standard to be firm with the customer. The Chefs also create any creative menu to serve the best for the customer. | Product line | Producing a big burgers and introducing the breakfast menu special which the new product lines competitors doesnt have. The yummiest and deliciousness of burger will be more tasted lusciously, they adds the twist of having an exciting innovation proposed to introduced to market where not only offering them a delightful and appetizing burger but also healthy and low calories ingredients. Uncompromising service | The product is fresh quality, this guarantee have caused the customer to be loyal with the brand. The significant is quickness because the researchers understand the customers well. No one wants to wait for a long time. The product will be served to the customer quickly and softly.

D.

TOWS ANALYSIS

Threats *

Future/potential competition from a national and international company. * The growing trend of a healthier lifestyle. * Existing numbers of competitors * Customer loyalty to competitors. * Large number of outlets of its competitors. * Unfamiliarity of Filipinos living in rural/provinces areas to Tropical Hut. |

Opportunities *

Tropical Hut provides very competitive levels of compensation and benefits for its chosen team members. * Availability of franchises. * A strong distributor network. * Internet potential for online orders to customers. * To be 100% Filipino owned. * Increasing number of malls which allows Tropical Hut to have more outlets. * Stores are not accessible * Do not have an effective advertisement approach * Food portions are not reasonable to its price. * The place is not world class. * The amenities have improved but the service is absolutely appalling. * Lack of promotional strategy.

Weaknesses

Strengths
Affordable prices of the products High customer loyalty among repeat customers Very attentive to their customers. Excellent staffs who are highly trained Strive to become an organization especially in the aspect of protecting the environment and the way of caring for future generations Have high marketing budget to develop new awareness

CHAPTER III: MARKET SEGMENTS A. MICROENVIRONMENTAL ANALYSIS Demographics | AgeFast food restaurant accepts all age started from 2yr old-onwards. Weather you came to the store with your family or you are in a group. Weather you are classmates or senior citizens because they already have segmentations for all their customers. They already have all of the variations for the customers.their stage cycle:family, couples, group of businessmen, students, a solely soul or even with no companion, .a professional, senior citizens, as long as they have the capability to buy the productKids enjoy the taste of fried chicken, spaghetti and hamburger.Teenagers enjoy eating on a fast food chain together with their friends and also for take-out while travel or while doing some activities.Adult usually eat on a fast food chain like tropical hut together with their grandchildren, siblings. Some adults enjoy eating on the park as a part of their picnic.Consumer needs and wants change with age although they may still | Demographics | wish to consume the same types of product whose are ages 18-55. Teenagers Are attracted by the Saver Menu which is affordable, and the internet access available in restaurants. Children Want to visit Tropical Huts as it is a fun place to eat.CLASS A- Affordable by any economic status.CLASS B- Affordable by any economic status.CLASS C- Products are made for Filipinos who love to eat on a fast food chain inside a park which offered affordable delicious foods.GenderMost of the customers found enjoyable eating in such a fast food restaurant such as tropical hut. This kind of restaurant dont choose any kind of customers it only means that all gender are all welcome to this kind of fast food restaurant. Female and male are the most top priority of the fast food chain. They do not discriminate weather there are such that is belong in the third generation or those who are belong in the third sex. The primary Tropical Hut national target market is adults, both men and women. Businesses can segment their markets by gender, andcome up with variations of their products devoted to serving a specific gender or alter their marketing campaigns to appeal to the | Demographics | EducationFast food chain such as tropical hut accepts various customers.1. those who are able to understand what was meant by the customers menu2. able to understand what suggests by the customers service3.with educational background4. Without educational background but has the capability to buy and transact to the crews of the store.5.professionals6.studentsCustomers who are graduated, under graduate or studying at the same time can purchase their product. * Marital Status-A restaurant might discover that married individuals are more willing to pay higher prices than single individuals, or that single customers purchase a certain product more frequently than married people. A restaurant can target married customers with promotions for anniversary bands, for example, while targeting unmarried women with "right-hand" rings, which are often worn as a signal of independence. Occupation- customers who have an occupation like business person can pay higher prices unlike those who have not. |

Demographics | Income1. with the capability to pay all the charges2. with the salary of minimum wages3. can provide good source of income to the family4.buying power of 100%When companies

develop pricing strategies for their brands and products, they consider the income levels of their target markets. They created affordable product to reach customers who cannot afford their high- end, expensive product. | Geographic | Tropical Hut is found in Quezon City Memorial Circle. Since the store is inside a park place, anyone who will visit the park could dine-in in the store to eat. | Psychological | Customers are not all the same. Market research identifies different types of customers. The costumers believe the most important feature is cleanness, which is followed by price, staff etiquette, dining environment of the restaurants, food quality, and consistency. However, the consumers do not care very much about the menus. | Behaviors | Similar Attitudes- Customers satisfy to the products price, quality and services they offer. Customers want to taste the products and know the difference to the other competitors. | Behaviors | It is frequent/infrequent purchase, loyalty to a product etc. Different people have different lifestyle patterns and our behavior may change as we pass through different stages of life. Consumers occasionally go to the fast food restaurants during holidays or in other special situations, but they frequently spend at fast food restaurants during weekdays and weekends. Consumers frequently purchase lunches or dinners from the fast food restaurants. Also purchase snacks spend at the fast restaurants anytime during a day. Consumers occasionally dine at the fast food restaurants, take their orders home. The consumers frequently go to the fast food restaurants with their friends, and they occasionally dine with their families and relatives or alone at the restaurants. The person in charge of ordering: usually it is the head of household who is in charge of ordering, but sometimes his/her spouse or children place orders.The consumers spend at the fast food restaurants for six major reasons. The first reason is cozy air-conditioning, the second is sanitary food handling, the third is fast service, and the last is playgrounds for children. They sometimes feel like having food-away-from-home instead of cooking by themselves. Some spend at fast food for the nutritional values it provides. |

B. MACROENVIRONMENTAL ANALYSIS Politico-legal | Tropical Hut has a made reasonable effort to provide nutritional ingredient information based upon standard product formulation and following the FDA guidelines using formulation and nutrition labeling software. Variation may occur due to: ingredient substitution and differences in product assembly or size at the restaurant. Test products, limited time offers and regional menu variations may not be included and not all items listed may be available in all restaurants. The information above may vary from printed materials that may be available in our restaurants. |

Socio- cultural | Commitment to possibly impact the communities we serve has always been a hallmark of Tropical Huts. Everyday our franchises give back to their communities in a number of ways through their involvement with local charitable programs and initiatives. | Technology | Tropical hut team of experts carefully oversees its hamburger to ensure a high quality burger. The company proactively establishes and monitors stringent specifications for quality. | Natural| Tropical Hut made a significant step toward improving our environmental footprint with in the communities where we operate. The supplies f raw materials are self sustaining and operating its own meat farms where the production highly tolerable. |

CHAPTER IV: MARKETING OBJECTIVES

Product | * Originating very remarkable product lines introducing Big burgers and Special breakfast menu starting up at Quezon Memorial Circle, Quezon City within the succeeding year of January 2013 through taking the risk of producing new variants with a twist of modernized notion which reach the pursuits of customer delight. * Bringing out awesome and appetizing customized burger which named Big Burger starting up at Quezon Memorial Circle, Quezon City within the succeeding year of January 201 by creating genuine impact once its tasted and the engaging looks highly noticeable. | Price | * Unfold using of low price yet high quality available materials by having a biodegradable transparent bag packaging putting it on the entire production system where the operation tested within the succeeding yearof January 2013 through the custom of traditional and authenticated design. Generating a quantifiable and economy cost of goods that used in producing proposed product lines within the succeeding year of January 2013 that takes on the entire selling system testing the market where everyone could afford it. | Place | * Rearranging the placement of furniture and pictures inside the premises of the store within 3 months of renovation from October to December 2011 by establishing segmentation of area for those people on to go bear with snacks purposes. * Turning out a blast and very accessible appearance within the succeeding year from January to December 2013 where customers feels the convenience and lively ambience through presenting the retention in the mind of customer that they were allowed to do cool stuffs and any school and work related matters in the store premises. | Promotion | * Solidification of Direct Marketing named Buskin where its tested to tied-up with Jayross Lucky Seven tours Bus Company within a year from October 2012 to October 2013 as expected anywhere its goes products could be easily availed in which the channel of distribution is highly visible. |

Process | * Provides a total Tropical Hut experience by taking their customers feel welcome in their store and leave with a smile and giving its employee salary benefits. | People | * Serve tremendous opportunities for the growth and development by means of enhancing its worker in a dynamic performance standard with a fast, accurate and friendly service. |

PART VI: CONTINUOUSLY SATISFYING CUSTOMER STRATEGY a. Marketing strategies

i. Unique Selling Proposition Its now the current and proposed selling proposition statement/ the unique selling proposition statement of Tropical Hut from Sa Sarap Tropical Hut move to Katropa sa Saya. They collaborated in this positioning to call the attention of publics to dominant the market spreading its awesomeness and make them feel good once tasted that theyll surely to one another. Sharing the happiness in every order of burger gives out a big smile in your heart. The concept of their logo comes from their aim to enhance and be well- recognized where it emphasized the great blends of burger as their originally offered products in the market. ii. Product Innovation and New Product Launching

Big Burgers Heres one of the proposed product lines where they create customized burgers. Best attraction of their customers will be followed and the way they want it to be will granted. Their aspiration formed to promote the idealism of valued customers. Tolerate to express their overflowing love with somebody. Product is available through-out the year sharing with us in every special occasion by providing services that matches in their expectation.

New Pinoy Favorites and Big Breakfast Introducing New Pinoy Favorites with a combination of Bicol Express, Menudo and Pork Dinuguan and more. Just choose. Tropical Hut is the lesser known version of these two Fast Food Behemoths, but they pack a punch when it comes to their Breakfast Meals. They don't serve the usual Sandwich-based food, they serve big meals definitely aimed to keep you full at breakfast.

Mobile game gear Introducing the Mobile game gear, a toy phone and a game player with a flashlight in one. Everything you would expect from Top Gear squeezed into a game you can take anywhere. The kids will enjoy this toy. They do believe in our bright ideas can attract and capture the expectation of our valued customer.

Proposed back pack Another proposed product lines where they primarily concerned . A back pack for everyone. The customer will enjoy it. You can have it for only 99 pesos each for every value meal purchase.

Halo- halo for you Another proposed product line halo-halo for you. You can have it for summer. This concept allows creating their own way on how they will be more contended in the taste and experiencing the delightfulness upon selection.

Mascots

Burgee

Tropical hut also have a Mascots to attract children. This mascot appears at promotional events and in television commercials, as well as on the product packaging.

iii. Packaging

Proposed Product Packaging It will be their intended change in the product packaging. Lower the manufacturing cost yet quality output. The objective in this concept is to be more eco friendly in the mind of their target market. They used a type of bag which designed non-transparently. The appeal looks traditional and authenticated design.

iv. Place Innovation

Place innovation is significant tool on enchanting customers to keep their sympathy and be more accessible by serving the comfort and easiness with the premises. They proposed to make a change in location of particular facility and equipment. They will be having an area segregation, the arrangement of table and chairs will be divided into two, right corner is available for those who want some snacks and allow them to do cool stuffs like any school and work related matters where theres a provided plug for free electricity consumption, the longer their stay, the more possibility to purchase products. They wanted to maintain lively ambience and much accommodated place where you feels like home and giving friendly services.

CHAPTER VII: BETTER THAN OTHER STRATEGY Promotional Strategies 1. TV Advertising

With the help of TV advertisement, the proposed new product lines will be introduced and will give a strong impact of retention in the mind of their target market. They tend to increase the exposure and gain attraction by airing the TV ads 3 times from 11am to 2 pm and repeated 5 times from 6 pm to 10 pm in ABS-CBN and GMA7. They firmly believe in that given time people usually standby watching shows. By this, our offered product will be recognized of our target market and will be hit our target sales.

2. Direct Marketing( New Product Distribution)

Buskin Solidifying the Direct Marketing will serve as great advantage to promote the products and will be visible to publics. Buskin is a direct market which is dominant contribution and retail network enable to copes and give convenient where it captured consumers to purchase within their trips. Obviously, they dream to tie up certain air con bus company that they sell and take over the space at the back seat

will place the kiosk and at the same time the promotion favorably identify mutual benefits establish in both parties.

3. Website Development

Proposed website Development Launching a more innovative and eye- catch website for tropical Hut Philippines, they proposed an easy way to make orders and provide information, articles and some blogs indicated to pursue more the consumers and viewers be attracted.

CHAPTER V11: SALESFORCE PERFORMANCE SRATEGY

The company must commit to their employee and to their development and treat them as a partner not a mere employee. * * RECOGNITION Best in Attendance (every month) * No late, no under time, no absences * * Employee must be given gift certificate worth of 500.00(Tropical hut items) Employee of the month * Proper grooming, pleasing personality, flexible, willing to work on different shifts. * The employee that could get the highest points would be given a plaque of appreciation Employee of the month * Must be given gift certificate worth of 1,000.00

* Portrait or picture of the employee of the month will be placed on the bulletin board or will be posted on the website/ page of the store.

* To be the employee of the month, the employee must earn points and to earn points, the employee must: * * * * * * * No late- 2 points Perfect attendance for the month(October)- 10 points No under time- 2 points Following overtime(mandatory)- 3 points TEAM BUILDING Year-end party Raffles and promos * 3rd prize * Rice cooker

* 2nd prize * Cell phone(galaxy)

* 1st prize * * * * * * * * * * * * I phone MEMORANDUM First offense: 3 consecutives late and absences Incomplete uniform Under time Punishment: Violation report Second offense: 5 violation report Punishment: Suspension for a week Third offense: Stealing money and products

* * *

Punishment: Termination BONUSES Good performance and leadership skills * 15% bonuses of their monthly salary * Free meal every week * Trip to Boracay, good for two persons

* *

Good Relationship Treat your employee as a family

PART 1X- MARKETING EXECUTION AND CONTROL AND CONTROL a. Execution TV Advertisement * Commercial both aired on GMA and ABS- CBN. Two spots on non primetime and four spots on every primetime/30 sec that will cost Php 1, 200,000/month for the last few months of year 2012 and by the year 2013 cost will increase 20% that will cost P 1,224,000. The total composed proposed budget will be p 57, 792,000 throughout the year. Year 2012 October November December January YEAR 2013 February | TV Ad | | P 1, 200,000 | | 1, 200, 000 | 1, 200, 000 | 1, 200, 000 | | | | | |

| 1, 224, 000 | | | |

March | 1, 224, 000 April May June | 1, 224, 000 | 1, 224, 000 | 1, 224, 000

July

| 1, 224, 000

| | |

August | 1, 224, 000 September

| 1, 224, 000

Total | P 57, 792,000 |

Buskin COSTING |

Kiosk Trays/tong Stall Lights Rental Expenses Total Project Cost

P 28,350 (2,500) (25,000) (850) 540,000 P 568, 350

Note: Rent Expenses: P 1, 500/day 22, 500/15 days 45,000/1 month |

Place Renovation Costing|

Particular Tables Chairs Couch P

Unit cost 8, 000 3000 5, 800

Quality 20 50 12

Total Cost P 160,000 150,000 69, 600

Display Shelves Wall clock Total:

8, 680 1000

2 1

17, 360 1000 P 397, 960

Website Development * We will hire a professional programmer to access the website every 2 months that will cost Php10, 000. 00 and personnel who will be in charge for maintenance and monitoring that will cost minimum salary wage Php. 480.00/ day. Year 2012 October November December January Year 2013 February | Costing | P 29, 800 | P 29, 800 | P 29, 800 | P 29, 800 | | | | | | | |

| 28, 800 | | | | | |

March | 28, 800 April May June July | 28, 800 | 28, 800 | 28, 800 | 28, 800

August | 28, 800 September

| 28, 800 |

TOTAL | P 349, 600

CONTROL Total Project Cost

Fixed Capital Cost: Furniture and Fixtures (Places Innovation) Tools and Equipments (Buskin) Total Fixed Cost Operating Expenses Advertising Expense Total Expenses 581, 141, 600 P 582, 107, 910 P 397, 960 568, 350 ________ P 966, 310

The actual performance of execution will vary in the progress of product that will run for the whole years that ends on October 2013 Marketing Proposal for Tropical Hut Philippines. The control will depend on what will be the result in execution. If the strategy matches to the expectation of objectives and it moves great, this proposal will last efficiently, this proposal will continue on the succeeding year. In case, uncertainty arises will be deliberate and create an adjustment, making it better or entirely discard it on the next year. PART X: FINANCIAL PLAN Company Name: Tropical Hut Total Project Cost Start-up Funding | | 68,800 | | |

Start-up Expenses to Fund

Start-up Assets to Fund | 50,000 Total Funding Required | 118,800 Assets | |

Non-cash Assets from Start-up | 30,000 Cash Requirements from Start-up Additional Cash Raised | 681,200

| |

| 50,000 | |

Cash Balance on Starting Date | 731,200 Total Assets | 761,200 |

Liabilities and Capital | Liabilities | | |0 |0

Current Borrowing Long-term Liabilities

| | |0 | |

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-free) | 0 Total Liabilities | 0 Capital | | | | |0 |

Planned Investment

Additional Investment Requirement Total Planned Investment

| | |

| 800,000

Loss at Start-up (Start-up Expenses) Total Capital | 731,200 |

| (68,800)

Total Capital and Liabilities Total Funding | 880000

| 731,200 |

Break-even Analysis

Break-even Analysis |

Monthly Units Break-even

| 9,706 | |

Monthly Revenue Break-even | 32,104 Assumptions: | |

Average Per-Unit Revenue

| 3.31 |

Average Per-Unit Variable Cost | 0.73 | Estimated Monthly Fixed Cost | 24,979 | | |

Projected Profit and Loss

Projected Cash Flow

Pro Forma Cash Flow

| Year 1 | Year 2 | Year 3 | Cash Received | | | | | | | | 1,116,654 | 558,327 | |0 |0 |0 |0 |0 |0 | |0 | |0 | | | | | | | 1,116,654 |

Cash from Operations | Cash Sales | 279,163

| 558,327

Subtotal Cash from Operations | 279,163 Additional Cash Received | | |0 |0 |0 |0 |0 |0

Sales Tax, VAT, HST/GST Received New Current Borrowing |0

New Other Liabilities (interest-free) New Long-term Liabilities |0

Sales of Other Current Assets | 0 Sales of Long-term Assets |0

New Investment Received

|0

|0

|0

| | 1,116,654 |

Subtotal Cash Received | 279,163

| 558,327

Expenditures | Year 1 | Year 2 | Year 3 | Expenditures from Operations | Cash Spending | 88,200 Bill Payments | 244,265 | | | | | | 1,048,886 |

| 262,000 | 430,245

| 449,600 | 599,286 | 692,245 | |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 | |

Subtotal Spent on Operations | 332,465 Additional Cash Spent | | | |0

Sales Tax, VAT, HST/GST Paid Out

| |0 | |0 | |

Principal Repayment of Current Borrowing Other Liabilities Principal Repayment |0

Long-term Liabilities Principal Repayment Purchase Other Current Assets | 0 Purchase Long-term Assets Dividends |0 |0 |0 |0 |0 |0 |

Subtotal Cash Spent

| 332,465

| 692,245

| 1,048,886 | |

Net Cash Flow | (53,301) Cash Balance | 677,899

| (133,918) | 543,981

| 67,767 | 611,748

Projected Balance Sheet

Pro Forma Balance Sheet

| Year 1 | Year 2 | Year 3 | Assets | | | | | | |

Current Assets |

Cash

| 677,899

| 543,981 |0 |0

| 611,748 |0 |

Other Current Assets Total Current Assets Long-term Assets Long-term Assets

| 677,899 | |0 | |0 |0 |0

| 543,981 | |0 |0 |0 | | |0 |

| 611,748

Accumulated Depreciation Total Long-term Assets | 0 Total Assets | 677,899

| 543,981

| 611,748

Liabilities and Capital | Year 1 | Year 2 | Year 3 | Current Liabilities Accounts Payable Current Borrowing | | | | | 50,452 |

| 29,242 |0 |0 |0

| 35,911 |0 |0 | |0

Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities |0

| | 50,452 |

| 29,242 |0 |0

| 35,911 | | 50,452 | 800,000

Total Liabilities | 29,242 Paid-in Capital | 800,000 Retained Earnings Earnings Total Capital

| 35,911 | 800,000

| | |

| (68,800)

| (151,343)

| (291,930) | |

| (82,543) | 648,657

| (140,587) | 508,070 | 677,899

| 53,226 | 561,296 | 543,981

Total Liabilities and Capital Net Worth |

| 611,748 |

648,657

| 508,070

| 561,296