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

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

Priyanka Trainee Asked on December 26, 2014 in Financial Planning.
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1 Answer(s)

Deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans are its two scenarios.

Priyanka Gupta Accountant Answered on December 27, 2014.
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