At the bottom of each list is the total of that column. In other words, the total assets are equal to the total liabilities plus the net worth. The particular elements of a balance sheet may vary significantly from day to day. Liabilities and net worth are sources of cash. They represent debt owed to creditors who have supplied cash or its equivalent.
Assets are a use of cash.
The company uses cash to purchase assets in order to make a profit. The Operating Cycle Current assets are those assets which will mature into cash during the next twelve months. They are a measure of the liquidity of a company, which is the amount of time it takes for an asset to be converted into cash. This time period is referred to as the Operating Cycle. In other words, a company begins with cash, purchases inventory with the cash, sells the inventory which creates a receivable, and then collects the receivable which generates the cash.