Effect of borrowing and interest on statement of cash flows. Gillette borrowed $250 million on October I, Year 12. The debt carries an annual interest rate of 6 percent and is payable in two installments, on April 1 and October I of each year. The debt matures on October I. Year 32. Gillette's accounting period ends on December 31 of each year. Using the format of Exhibit 4.12, indicate the effects of all these transactions on Gillette's statement of cash flows for Year 1 2.