Solution-Prepare a statement of cash flow for hoechst group

Prepare a statement of cash flow for hoechst group

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Reference no: EM13743067 , Length:

THE HOECHST GROUP

Consolidated Balance Sheet

(in millions of Euron)

For Year Ended 12/31

	Year 2	Year 1
Intangible assets	15,077	15,200
Property, plant & equipment	12,958	15,861
Investments	7,336	7,562
Noncurrent assets	35,971	36,823
Inventories	5,507	6,739
Receivables & prepaid items	14,830	14,908
Liquid assets	391	635
Current assets	20528	22,282
Total assets.	55,899	60,905
Equity of Hoechst AG stockholders	16.599	16,012
Minority interests	2,580	3,097
Stockholders' equity	19,179	19,109
Provisions for pensions & similar obligations	6,883	6,910
Other provisions	8,751	9,478
Provisions	15,634	16,388
Corporate debt	12,509	16,615
Liabilities & deterred Income	8,577	8,795
Total stockholders' equity & liabilities	55,899	60,905

THE HOECHST GROUP

Consolidated Statement Of Profit 8 g Lose . (in millions of Euro)

For Year Ended 12/31

	Year 2	Year 1
Net sates.............................................	43,704	52,100
Cost of goods sold..............................	25,533	(31,433)
Gross profit........................................	18,171	20,567
Distribution & selling costs................	(8,940)	(10,206)
Research & development costs...........	3820	3990
General & administrative costs...........	(2.880)	(2.806)
Ober operating income........................	2,331	1,834
Other operating expense ..............	(1,891)	1744
Operating profit ...............................	3.171	3.653
Result on sale & transfer of busthess	64	304
Investment income, net ......................	1,082	309
Interest expense, net ...........................	(1,037)	(1,019)
Other financial expense, net................	(157)	(90)
Profit before taxes on income ............	3,103	3,157
Taxes on income ................................	(944)	(1,383)
Income before minority interests .....	2,159	1.774
Minority interests ...............................	(284)	(⁴³¹)
Net income..........................................	1895	1,343

The following additional information was contained in the company's footnotes:

1. bepreciation expense of 2,190 in Year 2 was included in the cost of goods sold.

2. Amortization of intangible assets totaled 1,000 in Year 2 and was included in "General and Administrative Costs."

3. A gain on the sale of investments of 300 in Year 2 was included in "Investment income, net."

4. There were no sales or repurchases of Hoechst capital stock during Year 2.

Required

Prepare a statement of cash flow for The Hoechst Group for Year 2 using the indirect method. What does the company's statement of cash flow reveal about the business's financial health?

Reference no: EM13743067

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Prepare a statement of cash flow for hoechst group

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Reference no: EM13743067

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