Associate Finance Executive Question:
Download Questions PDF

Tell us Is it possible for a company to show positive cash flows but be in grave trouble?

Answer:

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward.in the pipeline

Download Associate Finance Executive Interview Questions And Answers PDF

Previous QuestionNext Question
Tell me why are increases in accounts receivable a cash reduction on the cash flow statement?Is it possible for a company to show positive net income but go bankrupt?