Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

So over here you had another liability.

United States. How do you do that?

Most times the liabilities are pretty easy to get a handle on.

What I could do is maybe 100 of it,

High tax and poor sales bankrupted the company.

So now I have this liability.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

Easy!

This is the angel investor, and this is all of us down here, and all of this is equity.

And let's say that's all of their liabilities.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

So let's say these are debt holders right here.

I owe the bank 750,000.

Loan to Entrepreneur D.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

This was equity.

liabilities.

More unemployment results in less tax revenue through income tax.

And they got an asset called loan to Bank A.

And then we have a little bit of cash on top of that.

They make you pay more in withholding just to help their cash flow out.

I had an appraisal done, and that won't get us half ofwhat we need.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

I'll continue the example in the next video, and I'll explain a little bit about the tax savings from carrying debt or interest.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

It's going to be taxes.

So let's see.

Over the last few years, both parties have worked together to reduce the deficit by more than 2.5 trillion mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans.

I think I had called it Loan C.

So you have an Accounts Payable liability of 100 sorry, at this point we had no Accounts Payable liability and then after the end of the month we have an Accounts Payable liability of 100.

I had 100 of cash, no accounts receiveables,

So the only liability is this 5,000.

Let me just make everything clear.

These are the assets that our five buddies have together.

So in this case, our assets are 250,000.