can it be possible that a company can have profits but still does not have enough cash to pay it's obligations (i.e suppliers, lenders) why?
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can it be possible that a company can have profits but still does not have enough cash to pay it's obligations (i.e
Answer:
Yes. This is possible especially if the owner or manager is not well equipped with how to handle a business or the money. Most of the times, durinf business transaction days, we won't be able to feel the growing loss of the capital until you needed something emergency expenses. This is possible through lending money to other person or buying stuffs one wants but does not need.