You have just missed a payment to the savings and loan holding the mortgage on your new warehouse because a great many new sales have not yet been converted to cash but instead are sitting in accounts receivable. With all of the production overtime caused by so much sales growth, you have a massive bimonthly payroll due the day after tomorrow that you may not be able to cover. Your income statement says so. It has been audited and it is absolutely right. You are very profitable, but in terms of cashflowability, your back is to the wall.
Growth takes cash, and lots of growth takes lots of cash.
You will see the why behind this phenomenon in further detail at several points in this book. The sad fact is that the majority of failing firms are profitable as they enter bankruptcy. No gas, no go. These firms concentrated on burning their fuel efficiently rather than on generating adequate fuel quantities. So instead of being able to keep on going, they found themselves pulled far off to the side of the road and in danger of falling into the bankruptcy ditch.