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https://study.com/academy/answer/how-is-it-possible-for-a-company-to-show-positive-net-income-but-go-bankrupt.html
accumulate Debtors but no collection
A company can show positive net income while facing bankruptcy by deteriorating working capital (by enhancing accounts receivable and reducing accounts payable) and financial tactics.
Quiet simple since most sales are Credit Sales & company has not put enough efforts to collect the accounts receivables due time so in the end runs out of cash to pay off due liabilities & thus gone bankrupt.
Even though the net income is positive, most of the revenue must be receivables. Since the sales would've been done on credit.
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