China Yuchai International Ltd. is a Bermuda holding company that owns 76.4 percent of the outstanding common shares of Guangxi Yuchai Machinery Company Ltd. Guangxi Yuchai is one of the leading manufacturers of diesel engines in China. Presented below are recent financial statements for China Yuchai International:

Required
Prepare a statement of cash flow using the indirect method. What does the company’s statement of cash flow reveal about the company’s financial health?

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CHINA YUCHAI INTERNATIONAL LTD. Consolidated Statement of Financial Position (in 000's of Chinese Yuan Renminbi \) Assets Current assets Cash. Inventories Receivable from related company. Trade receivables (net). Prepaid expenses Investments. Year 3 Year 4 173,038 285,831 301,366 292,192 98,270 60,263 548,128 475,254 69,343 84,252 800 Total current assets. 1,190,145 1,198,592 Noncurrent assets Property, plant, & equipment (net). 1,136,242 1,082,976 Investments. 99,446 50,063 Goodwill (net). 263,211 246,353 Deferred income tax 21,703 22,322 Total assets 2,710,747 2,600,306