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.

So the total assets were 5 billion in assets.

I'll do that in yellow.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

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

And we have these 4 billion of CDOs.

So it would be patent amortization.

I guess you can't quantify charisma and good looks.

And this goes back to the very first video we saw.

And if this is worth 2.5 billion, then your total assets are what?

Ancillary would be number 2 referred revenue.

Amortization is the exact same thing, but it deals with intangible assets.

It was both Communist and Totalitarian.

I spent 60,000 on Capital Expenditure sometimes it's property plant and equipment .

So its assets.

So I'm also solvent.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

So this is all equity.

That assets, A for assets, is equal to

Because remember, this piece right here only adds up to 140,000!

Malibu Equity and Investments.

They're the share of owner's equity and not of the asset also gives you a good sense of what market cap is

So that one definition takes this and they divide by the total assets.

You don't even need the loan.

I don't want to draw this box.

And rich, eh?

What is the new book value of the shares?

What's my current state of affairs?

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

And the asset in particular we're going to focus on is this 4 billion in residential CDOs right here.

Then you say, either these assets or somehow being undervalued or the company might have some assets that somehow are not captured on the balance sheet, right?

liabilities plus equity.

And what I wrote here is, it has 4 billion of liabilities.

So once again, I'm stuck holding this non liquid asset.

And if you are an investor, you're probably going to want to do the last of the three.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

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

In a world without leverage so if I didn't have all this

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Remember liabilities plus equities are equal to assets.

Gross national product is a nation's total output of goods and services as measured in monetary value.