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BALANCE-SHEET-READING5 MIN READ

Sort Liquidity Signals by Quality

Rank current asset changes by cash-readiness and risk.

Sort Liquidity Signals by Quality: place each signal where it belongs. Cash-ready Needs conversion Not a payment source Unrestricted cash balance increased Treasury bills maturing next month Receivables due from customers Seasonal inventory build Prepaid insurance and taxes Deposit with supplier for future goods

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