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Line of Credit
9 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Line of Credit

 

Note 5. Line of Credit

 

Morris Revolving Credit

At December 31, 2011 and March 31, 2011, Morris has $833,679 and $895,153 outstanding under a revolving credit line agreement that allows it to borrow up to a total of $1,200,000. The line of credit is secured by accounts receivable, guaranteed by a previous owner and is due August 27, 2012. The applicable interest rate under this agreement is based on the Prime Rate, plus 3.5% with a floor of 4.00%.