Accountancy, asked by Adityayagnik888, 3 months ago

How is it possible for the firm to be profitable and still go bankrupt

Answers

Answered by Loveleen68
8

Answer:

A company can be profitable and still go bankrupt from cash flow problems. If they must pay for materials in January but don't get paid by their customers until June, they need a loan to survive until June. If they don't get that loan—even if they have guaranteed sales in June—then they will go out of business.

Answered by sangeeta9470
1

Answer:

company can be profitable and still go bankrupt from cash flow problems. If they must pay for materials in January but don't get paid by their customers until June, they need a loan to survive until June. If they don't get that loan—even if they have guaranteed sales in June—then they will go out of business.

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