Refer to P2-5.

Bayer AG, with headquarters in Leverkusen, Germany, is an international, research-based group of companies active in health, agriculture, polymers, and chemicals. Popular products include Bayer Aspirin, Alka-Seltzer, and One-A-Day vitamins. The following is Bayer's (simplified) statement of financial position as at June 30,2009 :

Assume that the following transactions occurred in the second half of 2009:

a. Issued additional shares for \(€ 1,200\) in cash.

b. Borrowed \(€ 3,952\) from banks due in two years.

c. Declared and paid \(€ 953\) in dividends to shareholders.

d. Purchased additional intangibles for \(€ 45\) cash.

e. Purchased property, plant, and equipment; paid \(€ 2,647\) in cash and \(€ 5,410\) with additional long-term bank loans.

f. Acquired additional investments; paid \(€ 160\) in cash.
g. Lent \(€ 250\) to an associated company that signed a six-month note.
h. Sold investments costing \(€ 115\) for the same amount in cash.

Required:
Based on the transactions that occurred in 2009, prepare the investing and financing sections of the statement of cash flows of Bayer for the second half of 2009.

Transcribed Image Text:

ASSETS Current assets Cash and cash equivalents Receivables Inventories Other asse's Non-current assets Investments Property, plant, ard equipment Intangible assets Other assels BAYER AG Statement of Financial Position At June 30, 2009 (in millions of euros) 1.834 8.056 6.312 728 16,930 415 9,417 21,743 3,187 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable Financial liabilities Provisions Other short-term liabilities Non-current liabilities Provisions Deferred income taxes Financ al liabilitics Shareholders' equity Share capital Retained earings Total liabilities and shareholders' equity 34,762 51,692 2,013 2,304 3,568 1,607 9,492 7,846 3,568 12 279 23,693 8,284 10,223 18,507 51,692