أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
This is liquidity problem and its due to mismanagement of working capital.....
current asset increase while current liability decreased but paid with cash
Thanks for invitation,
In my opinion, when the working capital of any organization is less than the working capital requirements, this means that this organization has a "liquidity problem", which is clearly reflected on the negative cash balance.
working capital is
current assets minus the current liabilities
that means the decrease of the current liabilities meets increment of the current assets