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

Question ajoutée par Muhammad Irfan , Chief Accountant , Avocado Company
Date de publication: 2017/03/09

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par Muhammad Irfan , Chief Accountant , Avocado Company

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

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