So given that 2 on 100,000 debt.

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

I owe the bank 750,000.

So liabilities. Liabilities.

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

I just care about printing money,

But it's really a measure of the same thing.

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

I owe these people that money is 700 and my equity is 300.

liabilities as well.

Let's think about its liabilities.

Minus 1.075 that was the max that I could borrow

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

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

This was equity.

Let me just make everything clear.

So over here you had another liability.

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

I think I had called it Loan C.

I know that interest rates are fixed in accordance to the borrower's business risk.

So going back to our balance sheet, we had a 10 million asset, we had 5 million of debt.

So right now, the short seller, he has assets and

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

But, unfortunately, let's say that I had

What I'm squaring off in blue, that's the

So where does this lead?

The original mortgage is 750,000.

Because if someone tells you debt to equity, you can figure out the assets to equity, but in this case, the debt to equity ratio before I took any losses it was what?

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

What were we supposed to do?

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

All its buildings and its employees and its brand.

Now you could also have a yield curve for other types of debt.

So this is just another visual representation that

He only needs 90,000, but let's say he borrows 100,000.

So now I have this liability.

This business is a good business.

And just so you don't get confused, there's always a

I owe nothing to anyone.

I had 100 of cash, no accounts receiveables,

So the only liability is this 5,000.