In order to be able to specify realistic sensor requirements for the SLOSHSAT tank, a liquid configuration is defined with characteristics that are representative for the liquid behavior in the tank. A data processing scheme, based on Prony's method, is implemented. The scheme's performance is illustrated with a typical sequence of sensor data that are processed to recover the liquid behavior which generated these data. The routines are realized in a MATRIX environment and their contents are included in the Appendix of this Report. Based on the (limited) simulation results sensor requirements are listed.