Why can tax payment month create low cash even when profit is positive?

Tax type: separate corporate tax, VAT or sales tax, payroll tax, and estimated tax assumptions.
Payment month: model the actual cash payment month, not only the month when profit is recognized.
Tax payable: check whether an opening payable balance creates a cash outflow after the forecast starts.
Overlap: tax payments can coincide with payroll, supplier payments, rent, debt service, or capex.
Checks: review the cash balance and balance sheet checks before exporting Excel.

Question

Accepted Answer

Tax payment month can create low cash because tax expense and tax cash payment often happen in different months. Corporate tax, VAT, sales tax, estimated tax, payroll taxes, or prior-period payable balances can be paid after profit has already been recognized.

Why can tax payment month create low cash even when profit is positive?

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