Murphy Inc.

Hi, I've deliberately avoided the journal entries as they get too confusing. You're correct in what you've done though so well thought out. On the purchase of the oranges, we also close out the hedging instrument hence the cash receipt of 0.05m that reduces the net cash flow to 0.2m, whilst the reclassifying of the gain from OCI reduces the net expense to 0.2m too. Clever but too confusing. Rest assured you wouldn't be required to post journals in the exam. Hope you found the rest of the video useful. Thanks

Best of luck tomorrow!