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Use a dated liquidity ledger
An original investor starts with cash 30, expects a call of 40 at time one and a distribution of 20 at time two. A later receipt does not fund an earlier payment unless a separate financing source is available.
Track the cash balance at every event
The unfinanced path is 30→−10→10. The final 10 surplus hides a time-one shortfall of 10. Timing and the availability of other cash determine whether the call can be met.
| Point | Movement | Running cash |
|---|---|---|
| Start | 30 available | 30 |
| Time one call | −40 | −10 |
| Time two distribution | +20 | 10 |
Keep assumptions separate from commitments
An expected distribution can be delayed or differ from a plan. Record alternative schedules without presenting them as probabilities unless evidence supports weights. A contractual unfunded balance and a chosen call-timing scenario are different inputs.
Document a funding remedy rather than assuming it
The arithmetic identifies a conditional shortfall. It does not recommend borrowing, liquidating an asset or changing an allocation. Any remedy needs its actual costs, constraints and timing in a further model.
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