accounting/business discussion Why is it possible for a company to show a profit on their income…

accounting/business discussion Why is it possible for a company to show a profit on their income statements and still go bankrupt? If you were looking at the financial statements of a company, how would you go about satisfying yourself that a company was not having cash flow problems? Can you relate any examples of a business going bankrupt, or having to close because of cash flow problems, that you are familiar with; and in your opinion, what was the real cause they ran out of cash.

REQUIREMENTS

 business school accounting 1.5 pgs   refs and cite