Statement of Cash Flows for Year Ended October 31, 2013

question 126

Essay

Statement of cash flows for year ended October 31, 2013
Pujols would report the cash inflow of $42,000,000*** from the sale of the bonds as a cash flow from financing activities in its statement of cash flows. The accrued interest portion of the cash receipt was paid on June 30 and is part of the cash outflow from operating activities (below).
The $2,400,000 cash interest paid* is cash outflow from operating activities because interest is an income statement (operating) item.
Calculations:

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Definitions:

Universal Moral Rules

Fundamental ethical principles that are widely accepted and applied across different cultures and societies.

Categorical Imperative

A central concept in the moral philosophy of Immanuel Kant that dictates an action is morally right if it can be universally applied.

Lies

False statements made with the deliberate intention to deceive; an intentional untruth.

Prima Facie Duty

An obligation that appears to be binding upon first view, but may be overridden by stronger moral considerations.