As mentioned in this chapter, Magnotta Winery Corporation has an operating line of credit Note 4 to the financial statements in Magnotta 's 2010 annual report discusses the line of credit Required a What does it mean to have an operating line of credit of $11,500,000 available What kind of institut...

a An operating line of credit it a preapproved loan which can provide money for operations at any ti ...

As mentioned in this chapter, Magnotta Winery Corporation has an operating line of credit. Note 4 to

Question:

As mentioned in this chapter, Magnotta Winery has an operating Note 4 to the in Magnotta's 2010 annual report discusses the What does it mean to have an operating of $11,500,000 available? What kind of institution is the likely with?
b. The information regarding the interest rate on Magnotta's refers to "bank prime." What does this term mean?
c. Magnotta's bears interest at bank prime plus 0.875% in 2010, compared to bank prime plus 0.250% in 2009. What can you infer from this about the lender's assessment of the company's creditworthiness in 2010 compared to 2009?
d. Is Magnotta's secured or unsecured? Explain what this means and why a company might prefer to have its debt secured.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...