I guess you could say non cash assets, right?

To get some future benefit.

So for example, cash is an asset.

This is cash above and beyond what's needed in the cash register.

Interest is nothing but rent.

So you can say assets of the firm.

An asset is something that's going to give you some future economic benefit.

Now if you take this part over here all of the assets are 400, 400 100 in Liabilities still gets you to 300 in Equity.

I know this gets a little confusing, but it all ends up being valuing the assets as you emerge from bankruptcy.

So the customer is going to give you cash in the future.

I have factory tools worth 500,000, and then that cash will go away.

I don't know if someone dancing for you is an actual economic benefit, but you get the idea.

These are demand accounts.

The bank is going to be able to fulfill its promise.

Notice, when I did this balance sheet

So its assets.

The firm went under due to lack of capital.

You might be curious about hey, what's all this current asset business?

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

That assets, A for assets, is equal to

No matter how bad it was economically, he always got himself paid.

Do Low Interest Rates Ensure High Asset Prices?

Malibu Equity and Investments.

So I have 300, 400, 700, 1,000.

Let's stick with gold.

Deposits equal liabilities from a bank's point of view.

nothing but a communist cell.

Yes, it's an enterprise.

We thought of people as a liability.

I guess I could, too.

So this is lending some cash.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

Let me clear this.

Chances.Look, just think of this as a small deductible on a 2 billion insurance policy.

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

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Let's say this is generating cash.

it's like 71 . Right. 7 times 7 is 49 71 .

What's my current state of affairs?

This is day 10 in this alternate universe.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.