[hacman]

It is basically correct. They had ongoing revenue from sales, but also had ongoing costs related to the producing those sales, in addition to overhead from salaries, facilities, etc. What you would need to look at is their profits, because that is what adds to capital. Apple was actually losing money at the time (lost $800 million in 1996 and $1 billion in 1997)[1], so the problem may have been worse than the simplistic "three months away from bankruptcy." It is difficult to tell for sure without doing a far more in-depth analysis, but having 90 days working capital at an unprofitable company makes the "three months away from bankruptcy" assertion quite reasonable.

[1] http://files.shareholder.com/downloads/AAPL/1705877737x0xS10... (page 8), found via http://investor.apple.com/sec.cfm (yes, cfm!)