Answer
Profit is not cash: sales on credit create receivables (profit recognized, cash not yet received), inventory and capital spending tie up cash, and loan repayments and tax use cash without hitting profit the same way. Rapid growth especially consumes cash. So a profitable business can face a cash shortfall due to timing—hence the need for a cash budget.
Real-world example A fast-growing firm books profits but runs short of cash because it funds rising inventory and receivables.