Fuzzy Monkey Technologies, Incorporated purchased as a short-term investment $100 million of 8% bonds, dated January 1, on January 1, 2024. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $82 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2024, was $90 million.

4-b. Prepare any entry necessary to achieve this reporting objective.

5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.)