How is it possible for a company to show positive net income but go bankrupt?

If assets were assessed on the basis of historical value if it is greater than the current value

In Europe: One of the main reasons companies, with a positive net.
income, going bankrupt is when banks stop the credit facilities of the company.
Due to the current crisis banks are cutting credit facilities, and for the company going to another bank is impossible, because they do not give credit facilities either.
Example: Dozens of NL farmers went bankrupt because Deutsche Bank stopped with all small-business related loans in NL, and the farmers could not find any other bank to take over the credit facilities.

Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.

It is possible when companies account receivable increasing and lowering account payable  therefore company can't able to pay short term obligations.

Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.

 

Financial shenanigans acts or actions designed to mask or misrepresent the true financial performance or actual financial position of a company or entity. Financial shenanigans can range from relatively minor infractions involving creative interpretation of accounting rules to outright fraud over many years.

It usually happens when an organization comes under the exosure of overtrading, slow recovery of accounts receivables, increased inventories, growing accounts payables.

increase Inventory