You'd have to give up 93 of your net worth.

liabilities plus equity.

And why don't you like them as much?

It's simple math.

let me give you that piece of terminology, it just means net asset value.

I use 100 gold pieces.

These are my assets, and these are my liabilities.

Spread Sheet Document...

Recalculate Document

So in this period, I made 350,000.

It's the top line of the income statement.

Frobisher's net worth is upward of two and a half billion dollars.

So I asked the Minister over dinner,

Let's calculate our total liabilities.

So this is my liabilities.

At the current value of his estate, the inheritance tax will be at least six million dollars.

What are my assets?

How much are you worth at any one moment?

And in the case of Jason's business

So, for example, in this one, at the beginning of the period, before the 2007 income statement, the asset was worth 50,000.

So I use it essentially just to build a big vault, right?

And then when I have 1 10 of two million shares,

So let's say it's 3 million.

So if I just had a personal balance sheet,

Notice, when I did this balance sheet

And we'll focus on that a little bit later because that's a little bit more nuanced relative to the income statement.

So its assets.

Marking to market means I have an asset, and every now and then, maybe every few months, every quarter a quarter is just a fourth of a year I have to figure out what that asset is worth.

But let's just look at what they're saying.

Now we have 225,000 in cash.

That assets, A for assets, is equal to

Some badly made Python interpreters might raise an exception on this, but it should not.

People want to liquidate the assets.

And this is another important thing to think about.

Let's say this is what we assume is how many cupcakes we sell.

Malibu Equity and Investments.

It's much less likely.

No, I totally didn't do that correctly. Man, you can't take me anywhere.

These should be at equal size, and now the NAV per share is going to be 1,800 divided by 10, or 180.

It could be a quarterly income statement.

You probably can't see that square. So I put my assets on the right hand side.

Let's say our assets, if we paid 10 million for these assets, and these assets this is the income statement for 2008 are spitting out 1 million a year, or at least 1 million in this year, our return on asset I wasn't planning on introducing this, but it doesn't hurt to introduce it right now our return on asset, often acronymed ROA, would be well, the numerator is the return, which is 1 million.

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

I don't want to draw this box.

And rich, eh?