7. BANK INDEBTEDNESS The Corporation has an operating demand loan of credit available in the amount of $7,500 bearing interest at the bank prime rate, payable monthly. At year end, the Corporation had no draws against the line of credit (2...
AI summary The Corporation has a $7,500 demand loan available at the bank prime rate, secured by a general security agreement. No draws were made against the line of credit at year-end, and this was also the case in 2020.
b) Liquidity risk Liquidity risk is the risk of being unable to meet cash requirements or fund obligations as they come due. It stems from the possibility of a delay in realizing the fair value of investments. The Corporation manages its l...
AI summary Liquidity risk refers to the inability to meet cash obligations as they come due. The Corporation manages this risk by monitoring cash flows and holding liquid assets. Accounts payable and accrued liabilities include customer incentives, typically paid within 90 days, with some exceptions based on contract terms. HST and loan payable are remitted monthly.