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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?

Accounting Analysis Cash Flow Income Finance
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Question added by Haiderali Suterwala , Regional General Manager , Abu Dhabi National Hotels Compass ME LLC
Date Posted: 2013/08/14
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Saif Ur Rehman
by Saif Ur Rehman , Manager Financial Planning and Analysis , Tahweel Holding

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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