So therefore, I put it down there.

They're usable over two years.

And then their SG amp A is the same.

So I'll just write down the number first.

And there's all sorts of intangible assets that you might amortize.

But this I just want to show you some data here.

And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

This is the interest rate you assume.

And I'm running out of time in this video, and I'll cover it in the next, but you might have also heard of the word

I know I've overdrawn this picture a little bit too much.

Really, in my mind, it's very similar to depreciation.

Well, you know depreciation, man.

And just so you know, most corporate debt actually works that way.

The yield on the bond is 6 .

This is all a review of the depreciation video.

To figure out the cash from operations from actually how much cash the operations are producing.

So no cash went out of the door.

Depreciation is tangible.

Well, that one time lump sum fee should probably be spread over the life of the debt, so you would amortize that expense over its life.

If you've watched the video on depreciation and amortization, this might even include the depreciation on some of the physical assets they've bought, or maybe the amortization on the rights to the name Super Pizzeria.

If you divide 50,000 by 4, it's 12,500.

No, we didn't.

That's just the gasoline cost.

So 20,000 over 3 years is the life of that truck.

Ancillary would be number 2 referred revenue.

You're not a homeowner until you don't have debt.

Our profit, once again, is 30,000.

It was 1.6 million in bearer bonds.

It just makes economic sense. Right now, solar paybacks are between 30 and 50 years.

So I used half of it in year one.

Our short term goal for this is to be half the price of solar cells and our longer term goal is to be less than a five year payback.

You'll often hear the words depreciation and amortization used together.

Interesting.

And that makes sense, right?

liquidate it.

And then instead of having an equipment expense, instead of having that expense, they'll have an equipment depreciation expense.

Another type of sale is an actual asset sale, direct sale.

And then at the end of 2010, it'll say the machine is worth nothing.

They have no money down, 1 million loan, subprime, negative amortization, they had no credit rating, etc, etc.

So for example, depreciation, this was factory equipment, and it gets old as I use it, so I spread out its cost.

Bonds together with some money was stolen.

The money was stolen along with the bonds.

There might be different debt holders who have different

I, uh, I was just going to say I've been cashing A lot of bonds lately, haven't I?

Do it anyway. Who's moving the bearer bonds?