Is it possible for a company to show positive cash flows but still be in trouble?

Positive Cash flow is an indication that the cash balance of an entity has increased from its previous year. It also represents that the cash inflow is greater than the cash outflow during the period.

Positive Cash flow =
Closing Cash & Cash Equivalents > Opening Cash & Cash Equivalents; OR
Cash Inflow > Cash Outflow

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward in the pipeline.