In year 1, a company makes xxx sales and xxx expenses. The end result is negative net income. In year 2, the company's sales and expenses are the same and thus still have negative income.

In year 1, the company sold its assets and reduced some current liabilities, resulting in positive cash flow in operating activities. Investing activities were marginally positive with an increase in ppe. Cash flow from financing activities was negative and the overall balance sheet changes as negative. In year 2, the company saw negative cash flows in operating and investing activities, but a positive cash flow in financing activities. The overall balance sheet changes were positive due to a substantial increase in finance activities.

Compared to year 1, how is the health of the company in Year 2?