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MegaVans Ltd recently signed an agreement and paid a $30,000 deposit to purchase a new factory building. The factory will be available for moving into
MegaVans Ltd recently signed an agreement and paid a $30,000 deposit to purchase a new factory building. The factory will be available for moving into and available for use in nine weeks. At the time the factory is made available, MegaVans Ltd will pay the supplier the balance owing of $850,000.
At the time the deposit is paid why is it relevant for potential lenders and shareholders to be aware of this agreement? Briefly explain your answer.
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