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

Bankruptcy Finance Finance Management

Question added by Mohamed Kamal , Accounting Manager , El-Nafea United Company
Date Posted: 2017/08/09

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1 Answers

by Mohamed Kamal , Accounting Manager , El-Nafea United Company

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

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