Recent financial statements for The Hoechst Group, a German conglomerate with operations in agriculture, chemicals, pharmaceuticals, and veterinary products are pre- ver sented as follows:

The following additional information was contained in the company’s footnotes:
1. Depreciation 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?

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THE HOECHST GROUP Consolidated Balance Sheet (in millions of Euros) As of 12/31 Year 2 Year 1 Intangible assets Property, plant & equipment.. Investments 15,077 15,200 12,958 15,861 7,336 7,562 Noncurrent assets 35,371 38,623 Inventories 5,507 6,739 Receivables & prepaid items 14,630 14,908 Liquid assets 391 635 Current assets 20,528 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 9,476 Provisions.. 15,634 16,386 Corporate debt. 12,509 16,615 Liabilities & deferred income 8,577 8,795 Total stockholders' equity & liabilities 55,899 60.905