Financial Information

Very little funding has been received from the government except for one building grant and a grant to cover 20% of the cost of upgrading their computer equipment. Canada Manpower has also provided assistance for training staff on new computers and it used to help fund transportation and relocation costs of employees brought up from the south.
The Jaques have taken a few bank loans and have a mortgage on the office building. Don explains, "I have a different sort of approach to banks. I don't like dealing with banks and being in debt. I've always tried to stay away from deficit financing. For example, when we financed our building we took every cent we had, including our kids' university education money and their family allowance savings.

We put the money into the building, thinking we were investing into our own future.
"We have one mortgage on the office and we're paying it off as fast as we possibly can with all of our excess revenue. I just don't like to be at the mercy of the banks. Our credit rating is excellent since we always pay our bills quickly. When we went for a mortgage, the bank manager was excited about getting us as a client." The following table includes financial information from the newspaper and the graphic arts service for the five-year period from 1985 through 1989. The return-on-equity ratio (ROE) fluctuates between 0% and 24% over the period. Major repairs to the old house which served as the office were undertaken in 1986 and contributed to the small loss that occurred in 1986. It should be noted that throughout this period, management salaries were taken in each year, including in 1986;

these are not reflected in the ROE. If the bonuses were added back into net profit figures, then the ROE ratios would range from 35% to 72%.
The sales-to-assests ratio trends indicate that every one dollar invested in company assests generated sales rates varying from 1.04 times to 2.34. High sales rates of 2.34 in 1985 and 1.94 in 1986 provided the necessary capital to finance the new building, which is included in the 1987 financial statements. This addition almost doubled the value of company assets, but the utilization ratio still did not drop below one. Total salaries include management bonuses and have climbed by 13 percent over the five-year period. This slow increase is an indication of salary increase rather than additional staff.
The following sections describe the reasons for the success of Cascade Publishing Ltd, future plans for the business, and advice to new businesses.

Financial Information for Cascade Publishing Ltd.

 1985 1986 1987 1988 1989
Return on Equity (%) 24 0 23 14 18
Sales/Assets (times) 2.34 1.94 1.09 1.04 1.08
Total Salaries ($000) 130 134 145 159 147

Reasons for Success

Don and Sandra have worked together since they married. This partnership has worked because of their mutual respect for each other's skills and opinions. In addition, their marriage and family have been enhanced by the business partnership as well as their shared business philosophy. Finally, their emphasis on high-quality service for the best price helps them maintain their competitive edge.

Sandra and Don feel that their business is a success. According to Sandra, "I think that we're doing something with the newspaper that is important to the community. We keep track of events and we have an amazing file of photographs of the town's history. We've managed to survive even though it's hard work. We're also financially able to do things that we want."

Don agrees and adds, "We have come a long way with the material things. We're very proud of our building. Newspaper offices are usually messy, crowded, disorganized places that are fire traps. We made our space clean, organized, and friendly, with a positive character. We're always expanding in different areas of business that are fun and exciting. We're doing a good job at it and making money, which is our recipe for success."