Can a company show positive cash flows but be in grave trouble? How is it possible for a company to show positive net income but go bankrupt?

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How can a Company Show Positive Net Income but go Bankrupt?
Posted by:
SHARMIN ARA PARVIN
21-January-2022

Accounting Analysis Cash Flow Income Finance

Question added by Haiderali Suterwala , Regional General Manager , Abu Dhabi National Hotels Compass ME LLC
Date Posted: 2013/08/14

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by Saif Ur Rehman , Deputy Manager Budgeting, Planing and Reporting , Colgate Palmolive (Pakistan) Limited

bankruptcy mainly depends on Balance sheet items...
positive net income would not do much if there are so many liabilities to be paid and most of assets are being represented by reserves...

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Can a company show positive cash flows but be in grave trouble? How is it possible for a company to show positive net income but go bankrupt?

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