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On February 10, 2024, after issuance of its financial statements for calendar 2023, Monty Corp. entered into a financing agreement with Friedman Bank, allowing Monty
On February 10, 2024, after issuance of its financial statements for calendar 2023, Monty Corp. entered into a financing agreement with Friedman Bank, allowing Monty Corp. to borrow up to $3999000 at any time through 2025. Amounts borrowed under the agreement bear interest at 3% above the bank's prime interest rate and mature two years from the date of the loan. Monty presently has $1509000 of notes payable with Bringham Bank maturing March 15, 2024. The company intends to borrow $2490000 under the agreement with Friedman and pay off the notes payable to Bringham. The agreement with Friedman also requires Monty to maintain a working capital level of $9011000 and prohibits the payment of dividends on common shares without prior approval by Friedman. From the above information only, the total short-term debt of Monty Corp. on the December 31, 2023 statement of financial position is $0. $3999000. $2490000. $1509000
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