Do you think company bankruptcy comes more from : 1 - losses (in income statement) 2 - or bad cash flow and insolvency (financial position) ?

Cash Flow Forecasting Economics Finance Financial Statement Analysis

Question added by Mouhanad Alturkmani , Chief Financial Officer , Murano Property Development
Date Posted: 2017/10/03

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by Saher Meeran CMA , Associate , Ideal Management Consultants

I think Bankruptcy comes from bad cash flows and insolvency. Losses in the income statement are figures drawn from accrual system, it does not necessarily indiciate bankruptcy.

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Do you think company bankruptcy comes more from : 1 - losses (in income statement) 2 - or bad cash flow and insolvency (financial position) ?

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