Or they just have a super flush bank account.

And it's worth 100 gold.

These are liabilities.

Remember liabilities plus equities are equal to assets.

I'll do that in yellow.

So its assets.

liabilities plus equity.

It should start to make a little bit of intuitive sense

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

And, but it really it got the electricity. It took a long time.

That assets, A for assets, is equal to

So let's see, I have my assets right here.

liabilities plus equity.

His assets were auctioned off

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

All of the assets needed to start the firm, the pizzeria.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

Malibu Equity and Investments.

That just comes out of the definition of what equity is.

And so that cash ended up here.

So that's the situation we're dealing with.

Phuong, I'm not a rich man but I do have assets.

I don't want to draw this box.

And rich, eh?

He ties me up.

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

Their hands were bound.

So this is the operating profit. This is the money that just comes out of the asset itself.

They'll often say just like a big bucket of, they'll call them level three assets.

And we have 23 billion in liabilities.

Mark to model.

They're assets for those people.

Malibu Equity and Investments. Roger Van Zant.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

It's the same plot.

So I'll write that up here.

I won't use the square tool.

Let me fill this in.

I have in my house.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

I don't want to be tied down.

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 let me draw that out.