So what they do is, instead of just expensing the cost of the machine, when the machine is bought on the balance sheet at the beginning of 2007, they say, we now have an asset called a machine.

So those are the two side effects of high utilization.

Actually, I'll throw another thing in here that's a little unrelated to inflation, but high utilization makes prices go up and it also makes people want to add more capacity, right?

So its assets.

That assets, A for assets, is equal to

Malibu Equity and Investments.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

So it essentially spreads out the cost of that 500,000 a year.

..goods and equipment I needed to survive.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Mechanical systems.

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.

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

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

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.

Reset the chamber for Skywalker.

You gave us half of your wealth to help build this army

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

It could have been produced by someone from Mexico. It could have been produced by someone from Canada.

But let's say its assets are worth 1 million.

I find a lot of people are not very good at this.

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

Or they just have a super flush bank account.

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.

So 225,000

I guess you could say non cash assets, right?

Are you a man of means?

There's an electronic alarm barrier

Prepositioned equipment?

These are my assets, and these are my liabilities.

And if you look at the species level, you saw about fish.

Japanese automakers are investing heavily in new plant and equipment.

The company's capital expenditure program is set to be 10 billion yen for this year.