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?