Is it possible for a company to show positive cash flows but be in grave trouble?

Question

Saad ullah · Answer

Yes in two situations it happened first one is selling inventory but delaying payable in second situation revenue goes in the pipeline not forward.

مستخدم محذوف‎ · Answer

Yes, temporary positive cash flow.
Easiest answer the company is selling its long term assets and the source of the cash flow in this case will be investment activities, however, cash flow from operations (company core business) could be negative.
Hope this helps! Mohammad

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Is it possible for a company to show positive cash flows but be in grave trouble?

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