1.

Is It Possible For A Company To Have Positive Cash Flow But Still Be In Serious Financial Trouble?

Answer»

Yes. There are TWO EXAMPLES :

  1. A company that is selling off inventory but DELAYING payables will show positive cash flow for a while even though it is in trouble.
  2. A company has strong revenues for the period but future FORECASTS show that revenues will decline.

Yes. There are two examples :


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