The 2016 financial statements of Green Company include the following statement of cash flows:
a. Did Green Company increase or decrease its current assets, other than cash, during 2016? Is this change consistent with an increase in sales, or a decrease in sales, during the period? Explain.
b. From an investor’s point of view, has Green Company become more risky or less risky in 2016? Explain.
c. Does Green Company appear to be expanding or contracting its operations? How can you tell? What other financial statement information might you examine to determine whether the company is expanding or contracting its operations?
d. Does Green appear to be able to maintain its productive capacity without additional financing? Explain.

  • CreatedJune 11, 2015
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