So the only liability is this 5,000.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

I think I had called it Loan C.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

He only needs 90,000, but let's say he borrows 100,000.

Let me just make everything clear.

I owe the bank 750,000.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

This was equity.

Most times the liabilities are pretty easy to get a handle on.

I now have cash of 1 million. What are my liabilities?

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

Let's just say it's all of it.

Got it from the bank.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

The original mortgage is 750,000.

So once again, if this is a balance sheet, this is the assets, here are your liabilities.

It could be that one of these liabilities is worth more.

And forgive us our debts, as we forgive our debtors.

And forgive us our trespasses, as we forgive those who trespass against us.

And forgive us our trespasses, as we forgive them that trespass against us.

So where does this lead?

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

I owe these people that money is 700 and my equity is 300.

Who knows what it is.

This is one of its assets.

We didn't pay down any of the principal of the debt.

So what's going to be the liabilities and equity?

So my asset is now a 1.5 million house.

I had 100 of cash, no accounts receiveables,

These are the assets that our five buddies have together.

So over here you had another liability.

So in this case, our assets are 250,000.

My assets are 250,000.

20 plus 80 plus 5, so it's 105,000. 105,000 total liabilities.