The 2016 financial statements of Green Company include the following statement of cash flows:

Required:
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.

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GREEN COMPANY Statement of Cash Flows For the year ended December 31, 2016 Operating: Net Income Adjustments to convert to cash: $644,000 Depreciation expense Gain on sale of operating assets Change in current assets other than cash Change in current labilities 230,000 (14,000) 120,000) 80,000 Cash provided by operations Investing: $820,000 Purchase of property, plant, and equipment Proceeds from the sale of property, plant, and equipment (1,200,000) 400 Cash used for investing Financing: (800,000) Issuance of shares Retirement of bonds Dividends paid 1,000,000 C1,300,000) 250,000) Cash used for financing Decrease in cash (550,000) S(530,000)