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May 16, 2014

BUSINESS PLAN
PROPOSAL


Submitted to Ms. Cecile Ramirez


Submitted by Tropical Sno


______________________________________________________________________________
Prepared by Estevan Rash and Zulphacar Simon Tzul
______________________________________________________________________________
1

Table of Contents
Pg.
Figures .. 2
Executive Summary .. 3
Mission .. 4
Vision .. 4
Business Background ..... 5
Competitive Strategy ... 6
SWOT Analysis .. 7
Competition .. 8
Marketing Analysis .. 9
Target Market .. 10
Marketing Plan .. 11
Product Design 11
Promotion .... 12
Method of Distribution (Place) . 12
Pricing Strategy .. 13
Product Description .. 14
Packaging .. 16
Personnel .. 17
Security .. 18
Insurance .. 18
Location .. 19
Timing of Market Entry 20
Management/Labor 21
Financial Projections and figures . 21
Ratio and Ratio Type ... 30
Summary of Financial Needs 32
2

Figures

Fig. pg.
1.0 Tropical Sno Labor Projections 22
1.1 Tropical Sno Raw Material Cost Break Down 22
1.2 Start-up Cost 23
1.3 Projected Sales 1
st
Year of Operation 25
1.4 Tropical Sno Projected Revenue 26
1.5 Tropical Sno Cost of Goods Sold 27
1.6 Tropical Sno Income Statement 28
1.7 Tropical Sno Balance Sheet 29
1.8 Tropical Sno Cash Flow Projection 31
Reference 33










3

Executive Summary

This proposal describes a startup business - Tropical Sno. The main product of the
business is shaved ice. It is a unique product as it offers a wide variety of flavors. The business
will operate as a distributor of Tropical Sno currently established in USA and other countries.
The main ingredients of this product as well as necessary equipment are supplied by the main
branch.
Furthermore, the business main area of focus (niche) will be Belize City but with
weekend travel to mass public events such as sporting and celebration events. This is convenient
as there is a large population of 70,000 with the vast majority of its residents being pedestrians. It
also welcomes other targeted customers such as tourists. The mobile facility is convenient as it
allows for easy movement from one location to another. Along with this, it is appropriate for the
nature of the business; as the facility is designed for such purpose.
The competitive strategy emphasizes cost effective measures to operate this business as
the raw materials required for production are at a low cost and of good quality. The equipment
utilized for the production is uniquely designed to produce fine crush ice.
Moreover, this proposal will emphasize the main aspects which are operations, marketing
and finance.




4

Mission

Tropical Sno aims to satisfy consumer taste buds with refreshing shaved ice of over a hundred
different flavors at affordable prices.
Vision

To become Belizes number one retailer of best tasting shaved ice.

















5

Business Background
The company helps you create a custom package with flavors, equipment, accessories
and printed materials to get started. The company also allows for product diversification such as:
fruit juices, low fat yogurt and frozen ices. This product can serve as a standalone product or can
serve as an addition to an existing business such as restaurants, ice cream parlor, yogurt shop, or
retail outlets. The shaved ice will be a unique product because when flavors are combined they
create over a hundred delightful flavors to choose from. The current competitors only offer
minimal number of flavors; with most flavors offered in the range of five. The business will aim
at expanding in the future to other products including fast foods and pastries to satisfy consumer
demands.
Moreover, the climate of Belize opens its arms to allowing this business to be successful.
For the most part, Northern Belize has a subtropical climate which mainly is dry weather. In
order to capture a large proportion of the target market, it will be operating on a mobile entity.
This is important to consider as most competitors operating are also somewhat mobile.
The initial start-up capital would be $29,000 for the purpose of purchasing equipment and
financing initial operational costs. The main objective after establishment is to become the
number one retailer of this nature in Belize; that is to become the leading business in producing
shaved ice.


6

Competitive Strategy
In order to be successful, it is vital to identify the competitive strategy intended for the
business. There are three main types of competitive strategy which are Cost Leadership Strategy,
Differentiation Strategy, and Focus Strategy. Cost Leadership Strategy focuses on having the
lowest prices and operation costing the target market segment; Differentiation Strategy then
focuses on a target segment which is not sensitive to prices but instead the firm satisfies their
needs since they have the unique resources and capabilities to do so. On the other hand, Focus
strategy emphasizes a specific market niche.
Tropical Sno, is a startup business; however it will have a competitive advantage when it
comes to the costs of its raw materials. The distributor allows the business to acquire quality
ingredients at a low cost. Therefore, Tropical Sno will be implementing a Cost Leadership
Strategy. This will allow for the production of the product at a lower cost while maintaining a
good quality. This is achieved by efficiency in the business and cumulative experience.
Moreover, this requires efficient use of the business resources; there should be minimal
levels of waste material. This will then lead to profit maximization while reducing cost levels.







7

It is a well known-business (brand)
Technologically advanced equipment eg. S1-
100E Block Ice shaver
Improved customer service; training will be
provided to employees
The mobile unit allows for a wider coverage of
market and a adequate and ample
environment to prepare the product.
Strengths
It is a brand name in the US, however, the
people in Belize are not aware of this
brand.
HR is limited to only two employees due
to financial constraints
Weaknesses
Expand its market niche to other parts
of the country; mainly the cayes
Expansion of product line; eg. fast food
section
Expand its facilities eg. investing on
acquiring other mobile units.
Potentially hire the current push carts
(competitors)
Opportunities
Threats
Potential of an identical substitute; the
main branch charges no franchise fee and
encourages anyone to open a business of
this nature.
Increase number of substitutes
Currently there are 25 push carts operating;
this poses a threat to the business if they
were to form an association to compete
against Topical Sno.
j
k
;
j
l
SWOT Analysis






















8

Competition
Tropical Sno Belize will target the same market but with a superior product both in
quality, quantity and image; this will be achieve through efficient advertising through flyers,
coupons, social networks and television. The business main priority is quality not quantity; in
order to achieve our goal, special equipment will be used when making the product such as the
S1-1000E block ice crusher. Competitors do not focus in advertising their product however;
Tropical Sno will advertise its product through several means. Advertisements will be through
flyers, radio, television and Facebook. The packaging of the product will also make it unique as
opposed to the product of the competitors.
The competitors pricing is the same throughout; they sell 6 ounce cups for 0.50; filled
with crush ice, while Tropical Sno Belize will offer customers a selection three main sizes: four,
eight and twelve ounce, with the price accordingly at $1.00, $1.50 and $2.00. Accurate
information on sales and revenue will be collected and calculated after one year of operation. It is
expected to have at least 25% of the market at start up until expansion takes place. Effective
market strategies are to be placed so as to overcome the competitors strength; they are able to go
about every single neighborhood in the city to capture a wider market size.
Another key indirect competitor needs to be examined as well this is the beverage market.
This poses great threat as there are two main producers within the country of Belize; they are
Coca-Cola Company and Western Dairies. They also aim at providing consumers with
refreshments. It is vital to address these since they are other competitors who provide substitutes;
these are in the form of ice creams and yogurt.


9

Marketing Analysis
The industry for this product is one with great opportunities for the business to be
profitable as well as for expansion later on. The visibility and outreach of the business will also
contribute for it to become a well-known business in the industry. It is important to be aware of
possible competitors similar to Tropical Sno, this is why it is important to penetrate the market in
an efficient and effective manner.
Tropical Sno is not only focused on making high profit levels but also in taking part in the
social life of Belizeans; to also contribute a grain of sand to the development. Belize has a young
population this then means that there are many opportunities for the youths. This can be in the
form of sporting events, education, recreation and job opportunities. In venturing with other
organizations to support such cause will not only contribute financially to the business but it will
also allow for good will to be built for the business.











10

Target Market
The business will be located in the heart of Belize City as focal point; however the mobile
will allow for a better outreach to most of the target. Therefore, the target market is the residents
of Belize City and fellow visitors as well. The last census conducted in Belize indicated that 45%
of the population is urban, 35.6 of the population is age 14 or younger and 55.8 of the population
are 24 or younger (SIB, 2010). This is a good combination as the product is to have higher
demands and also it will be reaching out its target that are individuals bellow the age of 40. They
tend to demand this type of product more than older individuals.
Furthermore, another contributing factor is the arrivals of tourists. The constant of tourists
visiting Belize will contribute to increase in the incomes earned. Along with that over 60%, walk
the main streets of Belize, appreciating its people and fine art (BTB, 2013). Moreover, Belize
City has over 30% of Belizes overall population with high activity levels (SIB, 2010).










11

Marketing Plan
Product Design
Tropical Sno is a unique business. It will be one of the first companies to shave its own
ice and have a wide variety of authentic flavors. It will be a technology driven company.
Currently most of the competitor purchase ice already shaved by the suppliers. The quality is
different from Tropical Sno. As well as the flavors used; they are minimal and the taste is similar.
The ice used will be fine in textures and as the name implies as snow. The flavors are rich in color
but most importantly an amazing taste. It is not only sweetened but the flavor is rich. The
aesthetics of the overall business is important; this plays a key role in attracting customers.
Furthermore, in order to fully satisfy the customers, there will be product flexibility. This means
that they can be the ones to decide the mix that they would want; they do not have to limit
themselves to the flavors offered.
Tropical Sno will be one of its kinds; it will be the only business to offer a brand name
product of this nature. Even though there will not be developments of new products, there will be
enhancement of the product it offers. There will be quarterly evaluations to determine which
flavors are most demanded. The long term plans is to expand the product line; one of which could
potentially be to include a fast food section.





12

Promotion
In order to have an effective market penetration Tropical Sno will make use of all media
available. This will include local television stations, radio, newspaper and even social networks-
Facebook. This will be an investment which will in turn contribute to higher levels of profits. It
will also create awareness among consumers.
Method of Distribution (Place)
The main method used to get these types of products by competitors is via pedal carts and
ice cream parlors. Their strategy (using carts) is efficient as it bares minimum cost however; they
are limited to selling only what the cart is able to hold. On the other hand the ice cream parlors
are limited to selling only at their specific location.
Thereof, the objective of Tropical Sno is to apply other methods of distribution which
would capture a wider portion of the market. At the startup of the business it will be operating
with a special mobile. This will allow situating in the busiest areas around the city where there are
most people. This will also be applicable in cases of public events. The mobile is specifically
design for adequate accommodation and convenience.
Furthermore, in order to ensure that the strategy is functioning well, an evaluation will be
carried out after six months of operation as well as another evaluation at the end of the year. This
will allow identifying ways of improvement to reach out the market.





13

Pricing Strategy
Two main factors consumers always take into consideration are the products quality and
price. Therefore the pricing needs to be relatively convenient for the customer. It needs to be at a
margin whereby there is not a significant difference of that from the competitors. Pricing is
designed to be competitive yet at the same time profitable. Volume is a key factor which can be
managed to the advantage of the business. An estimated cost analysis and breakeven analysis has
been conducted to determine a possible pricing structure.
Even though, there is a variety in the product it still incurs the same cost; one flavor will
not be more or less expensive than another. It is expected that at a certain point costs will be
higher than revenues since this is the startup of the business.












14

Product Description
The product to be offered is shaved ice. The ice will be purchased from a supplier in the
form of block ice. This will then be shaved by a special machinery into a container. Over the
shaved ice is poured a topping of either 1 or a combination of 34 flavors plus rum or some other
alcohol spirit if so desired; however the customer must be of legal age. Your imagination then is
the only limit on the flavor combination you can create. There are four main ingredients.
The primary ingredient is water; liquid and solid-ice. The water can be supplied by local
suppliers or if it is cost effective to the business machinery to purify the water can potentially be
purchased. Likewise, the ice needed can be purchased from local suppliers or be produced by the
business internally.
Second, sugar is another raw material used. It is used to sweeten the Tropical Sno
products. White Sugar is one of the largest income earners for Belize; it is produced locally.
Therefore, it will be easy to acquire as well. Third, the main ingredients needed are the flavor
packets. These are supplied by the wholesaler. It comes as dry powder. This makes it convenient
when shipped since it is more cost effective and minimal potential damage. It also allows for a
wider range of storage time as well as minimum storage space. These packets are mixed with
sugar and water. It is vital to have in storage safety stocks in case of shortage or unexpected
events.




15

Lastly, the packaging required will also be purchased from the main supplier since they
produce unique containers. These containers will be used because they have a professional look,
unlike anything presently used in Belize for similar products while also serving as advertising for
the product because of the printed logo on every container. However it is important to have
alternatives; therefore, in case of inadequate supplies, similar containers will be purchased from
local suppliers.
When it comes to inventory controls, daily checks will be done for the supply of ice.
However inventory controls will be carried out mainly for the flavoring packets, sugar and the
packaging containers. The flavoring packets will be shipped from Tropical Sno USA in Salt
Lake City Utah, therefore it is important to keep safety stocks of flavoring and packaging so as to
be secure of unexpected occurrences. An inventory for approximately no less than three months
will be kept. The lead time of order the supplies and receiving them is approximately two to four
weeks.
When it comes to the shipment of the supplies there are two alternatives via sea or air.
The most cost effective and efficient is via air since the cost will be less and it will take less time
to be shipped. The cost will not be substantial due to the minimum weight of the packets.
It is important to consider unexpected demands, in case of shortage there is an overnight
delivery available. Another important aspect is the availability of electricity. A generator will be
attained for the provision of electricity.





16

Packaging
This plays a very important role; this allows the business customers to readily identify the
product. An attractive package contributes to increasing advertising as well as indirect effect to
demand; for the most part individuals tend to be attracted to the aesthetics of a product.
The Sno cones will be served in disposable cups which have the logo of the business
stamped to it; there will also be napkins available to customers as well stamped with the
companys logo.

















17

Personnel
In order to be cost effective, the employees to be hired need to be local with in Belize
City. When it comes to hiring, this will be done through personal and networking contacts.
Preference will be giving to relatives. However they will be required to have recommendation(s).
The manager will be responsible of the paper work and in tracking the revenue and expenses.
The following a personnel duties which will be required by each employee:
To make purchases as required of all supplies for daily operation.
To prepare all ingredients for preparation of product to consumers.
To prepare and make product per each customer request.
To maintain company accountability paper work.
To perform all daily maintenance requirements on company facilities equipment.
To make with drawls and deposit to companys account (as requested).
To move company vehicle and mobile unit as required to various locations.
Moreover, when it comes to salaries there will be startup salaries as follows:
Shift Manager- full time $150 per week
Serving assistant- full time $125 per week
However this will be adjusted according to profit levels; the company will also cover
required employee coverage; this is social security taxes for each employed individual. The
employees to be hired will be adequate for the smooth operation of the business. This will be set
in place in that manner since the business aims at expanding after the first year of operation.



18

Security
While operating a business it is important to consider potential threats. Internal theft due
to employee dishonesty can lead to substantial inefficiencies. The nature of the business it will be
practical to follow up on the amount sold. However, there will be a percentage set in cases of
damage and waste. In order to follow up on how much is sold there will be an inventory of the
amount of containers and the different sizes. Therefore this will assist in security measures as
well as to estimate the level of revenue. Belize City experiences high rates of burglaries therefore
it is important to take precautionary methods to protect the companys assets. This will be done
by placing burglar bars and deadlocks on companys assets.
Insurance
In order to enhance security measures the business will carry two types of insurance.
There will be property insurance against theft, fire and natural disaster; especially against theft as
there are high rates in Belize. There will also be insurance for the mobile since this is an
insurance which is mandatory in Belize. The insurance will be with Home Protector located 3808
University Boulevard, Belize.







19

Location
The ideal location for Tropical Sno in Belize City is at its heart whereby most of
population activity occurs. A location near the heart of Belize City next to Brodies is to be
rented. There are a lot of pedestrians at this location as well as tourist activity.
Moreover, the main reason for the section of this place is that even though the business
will be operating in a mobile unit, it is necessary to be in a location where there is a lot of the
target population. When it comes to special events the mobile unit will enable for easy access
and movement to the event places. For example on weekends the mobile unit will be relocated in
areas where there are most activities happening.










20

Timing of Market Entry
Market entry is tentatively scheduled for September 1
st
, 2014. However advertising
and promotions will initiate a month before. This date was selected for three main reasons.
Firstly this is the period of time whereby Belize City has the greatest concentration of population
during this time period. The population basically doubles during this time. This month is a very
important time for Belize as it prepares to celebrate its independence on the September 21
st
,
2014. The days before the celebrations there are other events held such as carnivals, sporting
events and cultural events.
During this time many Belizeans travel back to their country to celebrate this special
day. The weather at this time is also very beneficial as it is hot and humid; therefore there is a
high demand for refreshments. Therefore this is an ideal time period to have the grand opening
because of the national holidays, increase in population activity as well as the weather.








21

Management/ Labor

At the startup of the business, it will start operating with three employees. The business
would operate six days per week; nine hours per day while on Sunday for five hours. When it comes
to holidays and surrounding events the time will be extended as necessary.
Moreover, the individual managing the business must have a Bachelors Degree in Business
Management.
Financial Projections
In order to have an estimate ad projected sales and expenses, data has been gathered.
Data from suppliers of ingredients and services have been gathered. There are probabilities that
in the first year of startup, that there will be minimal or no profits due to startup cost. This
section provides with projections on sales volume for the first year as well as with the expenses
to be incurred.






22

Tropical Sno Labor Projections: Figure 1.0

Position Weekly Pay Taxes
Shift Manager $150 $12.80
Assistant $125 $10.40
Total Labor Expense $298.20
Tropical Sno Raw Material Cost Break Down: Figure 1.1

Material Cost/Quantity Supplier
Cups- 4 OZ $24.00/800 Tropical Sno USA
Cups- 8 OZ $24.00/600 Tropical Sno USA
Cups- 12 OZ $15.00/300 Tropical Sno USA
Flavor Paks $4.95/1 Tropical Sno USA
Sugar $0.50/lb. Belize Sugar Industries
Ice $0.21/lb ZETA
Water According to Consumption Belize Water Service




23

Start-up Cost: Figure 1.2

Quantity Unit Item Description Unit Price Total
40 CRT Individual Flavor Packs $47.00 $1880.00
1 EA SI-100 Block Ice Shaver 1995.00 1995.00
1 EA Heavy Duty Foot Control 44.95 44.95
4 DZ Quart Pour Bottles 9.95 39.80
4 DZ Quart Pour Spouts 3.95 15.80
4 DZ Spout Caps 1.10 4.40
4 DZ Bottle Caps 1.10 4.40
2 ST Bottle Label Sets 9.95 19.90
4 EA Pour Bottle Speed Rack 55.50 222.00
9 CS Gallon Mixing Jugs 7.50 67.50
12 CS 4 OZ Food Container 27.38 328.56
6 CS 8 OZ Cups 24.00 144.00
2 CS 12 OZ Cups 24.00 48.00
2 CS Colored Spoon Small 10.00 20.00
1 CS Colored Spoon Medium 13.00 13.00
3 CS Printed Napkins 60.00 180.00
1 EA Banner 22.95 22.95
1 EA Flavor Board 69.95 69.95
1 EA Menu Board 34.95 34.95
2 EA Posters 1.25 2.50
24

1 EA 12 X 12 Logo Decal 6.50 6.50
1 EA 33 X 36 Logo Decal 19.95 19.95
1 EA 6 X 6 Static VYNYL Logo Decal 2.95 2.95
5 EA White T-Shirts 10.00 39.75
10 EA Apron 10.70 107.00
5 EA Golf Shirts 14.25 71.25
5 EA Baseball Caps 3.50 17.50
6 EA Head Cooler (VISOR) 3.50 21.00
1 EA Coupons 2 for 1 37.50 37.50
1 EA Coupons Free Sample 37.50 37.50
Total Package 5518.56
Less Discount 15% 827.78
Total: $4690.78

This statement represents the costs to be incurred during the first year of operation of the
business; it mainly includes the equipment necessary.





25

Projected Sales- 1
st
Year of Operation: Figure 1.3

Month %
INC./
DEO
Conservative Expected Maximum
4OZ 8OZ 120Z 4OZ 8OZ 120Z 4OZ 8OZ 12OZ
September 20% 2700 1350 450 4500 2250 750 5400 2700 900
October 0% 2250 1125 375 3750 1875 625 4500 2250 750
November 0% 2250 1125 375 3750 1875 625 4500 2250 750
December -20% 1808 900 300 3000 1500 500 3600 1800 600
January -20% 1808 900 300 3000 1500 500 3600 1800 600
February -20% 1808 900 300 3000 1500 500 3600 1800 600
March 5% 2363 1182 394 3938 1969 656 4725 2363 788
April 10% 2475 1238 413 4125 2063 688 4950 2475 825
May 0% 2250 1125 375 3750 1875 625 4500 2250 750
June 0% 2250 1125 375 3750 1875 625 4500 2250 750
July 0% 2250 1125 375 3750 1875 625 4500 2250 750
August 0% 2250 1125 375 3750 1875 625 4500 2250 750
Totals 26462 13220 4407 44063 22032 7344 52875 26438 8813

The figure above illustrates estimated sales volume. This illustrates expected sales in three
various circumstances conservative, expected and maximum.

26

Tropical Sno Projected Revenue: Figure 1.4


Conservative

Expected

Maximum

September $5626.00 $9376.00 $11250.00
October $4688.00 $7814.00 $9376.00
November $4688.00 $7814.00 $9376.00
December $3750.00 $6252.00 $7500.00
January $3750.00 $6252.00 $7500.00
February $3750.00 $6252.00 $7500.00
March $4922.00 $8204.00 $9844.00
April $5156.00 $8596.00 $10314.00
May $4688.00 $7814.00 $9376.00
June $4688.00 $7814.00 $9376.00
July $4688.00 $7814.00 $9376.00
August $4688.00 $7814.00 $9376.00
Total: $55082.00 $91816.00 $110164.00

Climate changes influences the level of sales. In the cold season sales decrease while in the
warm season sales increase. This therefore leads to higher profit levels. Quantity sales are
affected by the weather/ seasonal patterns.










27

Tropical Sno Cost of Goods Sold: Figure 1.5

Conservative Expected Maximum
Cups: 4OZ $793.86 $1321.89 $1586.25
8 OZ $528.80 $881.28 $1057.52
12 OZ $220.35 $367.20 $440.65
Total Cost: (Cups) $1543.01 $2570.37 $3084.42

Flavor Paks 4OZ 79386 132189 158625
8 OZ 52880 88128 105752
12 OZ 22035 36720 44065
Total OZ 154301 257037 308442
Total Paks 1205.48 2008.10 2409.70
Total Syrup Cost $5687.00 $9447.00 $11327.00

Sugar
5lbs per pak $60.30 $100.45 $120.50

Ice OZ 440848 734392 881264
Additional: 5% Waste 484933 807831 969390
Total Ice Cost $322.07 $536.52 $643.79

Total Cost of Goods Sold $7552.08 $12553.89 $15055.21


This figure illustrates the costs of the ingredients necessary for production. It illustrates the
cost to be incurred at different sales volume.







28

Tropical Sno Income Statement: Figure 1.6


Tropical Sno
Income Statement
For year ending August 31
st
2014, 2015, 2016, 2017, 2018


2014
(Expected)

Common
Size
2015 2016 2017 2018
Sales $45,908.00 100% $50,498.80 $53,023.74 $55,674.93 $57345.18
Cost of Goods Sold $12,553.89 27.3% $13,377.10 $14,045.96 $14,748.26 $15190.71
Gross Profit $33,354.11 72.6% $37,121.70 $38,977.79 $40,926.68 $42,154.48
Operating Expenses:
Marketing and Selling $16,750.00 36.49% $18,425.00 $19,346.25 $20,313.56 $20,922.97
General and
Administrative
$9,545.00 20.79% $3,000.00 $3,000.00 $3,000.00 $3,000.00
Depreciation $910.00 1.98% $1,001.00 $1,051.05 $1,103.60 1158.78
Total Operating
Expenses
$27,205.00 59.26% $22,426.00 $23,397.30 $24567.17 25,304.18
Profit Before Taxes $6,149.11 13.4% $14,695.70 $15,580.49 $16,359.51 $16,850.3
Tax and Import Fees $1,308.40 2.85% $2,939.14 $3,116.10 $3,392.1 $3,493.86
Profit after taxes and
fees
$4,840.71 10.50% $11,756.56 $12,464.39 $12,967.41 $13356.44



Note 1: Marketing and selling expenses include direct labor and selling expense
Note 2: General & administration Expense include: Gasoline, Utilities and all other
expenses
Note 3: An estimate of 20% was used to calculate Import and Government fees as the
Belize govt. is presently instituting new tax and fee procedures
Note 4: 2015, 2016, 2017 AND 2018 Sales were increase 10% , 5%, 5%, AND 3%
respectively and used as the basis for the respective Income statement.
Note 5: The business is estimated to incur a 10.5% profit levels in its first year of operation.
The costs initially incurred will be high, since the business is just starting up.

29

Tropical Sno Balance Sheet: Figure 1.7

Tropical Sno
Balance Sheet
August 31, 2015

Current Assets
Cash $36402.00
Inventories $5054.00
Other Current Asset $1620.00
Total Current Asset $43076.00
Fixed Asset
Mobile Unit Trailer $5000.00
Accumulated Depreciation 3% ($150.00)
Vehicle $8000.00
Accumulated Depreciation 25% ($1250.00)
Ice Shaver $3390.00
Accumulated Depreciation 10% ($339.00)
Generator $800.00
Accumulated Depreciation 10% ($80.00)
Total Assets $58447.50
Liabilities and Equity
Current Liabilities $1000.00
Accrued Wages and Salaries $150.00
Accrued Taxes $1150.00
Owners Equity $57297.50
Total Liabilities and Equity $58447.50

Note 1 Cash balance is based on expected sales figures
Note 2 Depreciation based on Belize Tax Code allowable depreciation







30

Ratio
Cash and Marketable Securities $36,402
Accounts Receivables.. $0
Inventory.. $5,054
Current Asset. $1,620
Total Asset $58,448
Current Liabilities $1,150
Current Maturities of Long Term Debt $0
Long Term Debt.. $0
Total Stock Holders Equity.. $57,298
Net Sales..
Cost of Goods Sold
Depreciation Expense.
Interest Expense.
Taxes..
Operating Income (EBIT)..
Common Stock Dividends
Common Stock Holder Equity
Market Price.
Common Shares Outstanding..

Ratio/Type

I. Liquidity Ratio
1. Current Ratio.
2. Quick Ratio.
II. Activity Ratio
3. Total Asset turnover Ratio
4. Average Collection Period
5. Days Inventory
III. Leverage Ratio
6. Debt Ratio..
7. Debt to - Net Worth Ratio..
IV. Coverage Ratio
8. Times Interest Earned Ratio.
9. Cash Flow - to - Current Maturities..
V. Profitability Ratios
10. Net Return on Total Asset..
11. Net Return on Common Equity..
VI. Market Ratio
12. Price - to - Earnings Ratio.
13. Market to Book Ratio..




31

Tropical Sno Cash Flow Projection: Figure 1.8

TROPICAL SNO
CASH FLOW PROJECTION
FOR YEAR ENDING AUGUST 2014

Sept - Nov Dec Feb Mar-May Jun - Aug
CNSTVTE EXPTD CNSTVTE EXPTD CNSTVTEEXPTD CNSTVTEEXPTD
Cash Receipts $15,002.00$25,004.00 $11,250.00 $18,756.00 $14,766.00$24,614.00 $14,064.00$23,442.00
Cash
Disbursement:

Direct Materials $3,664.00 $6,080.00 $3,664.00 $6,080.00 $3,664.00 $6,080.00 $3,664.00 $6,080.00
Direct Labor $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00
Operating
Supplies
$2,600.00 $2,600.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00
Selling Expenses $3000.00 $3,000 $1500.00 $1500.00 $1500.00 $1500.00 $1500.00 $1500.00
Gen & Admin Exp. $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00
Insurance $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00
Taxes $976.00 $976.00 $976.00 $976.00 $976.00 $976.00 $976.00 $976.00
Capital
Expenditure
$14,190.00$14,190.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total
Disbursement
$31,280.00$33,696.00 $13,490.00 $15,906.00 $13,490.00 $15,906.00 $13,490.00$15,906.00

Cash increase
(decrease)
($16,278.00)($8,692.0
)
($2,240.00)$2,850.00 $1,276.00 $8708.00 $574.00 $7,536.00
Beginning cash
balance
$26,000 $26,000 $9,722.00 $17,308.00 $7,482.00 $20,158.00 $8,758.00 $28,866.00

Ending Cash
Balance
$9,722.00 $17,308.00 $7,482.00 $20,158.00 $8,758.00 $28,866.00 $9,332.00 $36,402.00






32

Summary of Financial Needs

Deluxe Package Less Ice Shaver..$5,928.00
Capital Expenditure.Vehicle $8,000.00
Generator $800.00
Mobile Unit $5,000.00
Ice Shaver $3,390.00 $17,190.00

Selling and Miscellaneous Expenditures $5882.00
PERSONAL FINANCES FOR THIS VENTURE $29,000.00






Tropical Sno is a startup business therefore, it initially intents to initiate its operations with a
manager who will oversee the business day to day operations and an employee who will
produce the product.
33

References

Belize Tourism Board 2013 Statistics
Statistical Institute of Belize 2010 census
www.tropicalsno.com