Recent financial statements for The Hoechst Group, a German conglomerate with operations in agriculture, chemicals, pharmaceuticals, and
Question:
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?
Step by Step Answer:
Financial Accounting For Executives And MBAs
ISBN: 9781618531988
4th Edition
Authors: Wallace, Simko, Ferris