I'll just write A period, so I don't have to write the whole thing.

Increasing the Accounts Payable is allowing us to not use all of our cash

So over here you had another liability.

Accounts Payable is a liability

But it's a source of cash because we don't have to use our own cash.

I'm only going to pay you 100 now and I'm going to give you 100 later

So let me show you that right over here...

And the only liability that Ben's shoe company had was this 5,000 in accounts payable...

You've increased this liability that you owe things to other people.

Our profit in the first period is 30,000.

So you have an Accounts Payable liability of 100 sorry, at this point we had no Accounts Payable liability and then after the end of the month we have an Accounts Payable liability of 100.

Accounts Payable

I will try to do proportional to the size so that right over there, that is the accounts payable the five thousand dollars. they both have that on the liability size now where they really diverge so this is the same amount 5 thousand dollars it should be about 1 4 of the size its not exactly how I've drawn it but where they really diverge is that Jason

so by a few months, or a few weeks, or whatever so they owe those vendors some money so they both have 5 thousand dollars in accounts payables

So they're going to buy a pizzeria with the ovens inside of them.

And going into the period, you didn't have any Accounts Payable, and then now that you're essentially borrowing 100 from your vendors, you're allowing to push back when you pay them, you now have an Accounts Payable of 100. and I'm not going to work it through on all of this stuff over here.

So let me erase that and then let's add a line right over here so we can say Accounts Payable increase and now this is a source of cash.

Don't buy things on credit.

And we had no other changes, we haven't even addressed accounts payable, that's essentially pushing back, owing people, paying other people, paying your vendors money, but I don't even address that in the previous example.

Is it practical?

liabilities there and liabilities over here now, they both have the same amount of accounts payables maybe the people they are buying shoes from are able to delay paying those shoes just a little bit

They've made it conversational.

So over here we have a net change in accounts receivable.

However, since I was just an ordinary businessman,

How many shall we buy Chef?

And in Bernanke's mind, although that's exactly what he's doing he's printing money to buy other things than what the Fed traditionally does, when it cares about the overnight borrowing rate, he calls it, not necessarily quantitative easing, but credit easing, and in his mind, even though mechanically they're the same thing, in his mind, he's saying, Look, I'm printing this money

Leave your money on the table.

Something like, This talk has been brought to you by Moore Technologies.

I came to buy goldfish.

We now have the money, given these low prices, to distribute

Now this will change your cash accounting numbers, this will now be 100, and this would now be 500. but the more important thing is how this can be accounted for in Accounts Payable.

We could say, well, if my original principle is 50 so it's going to be 50 times e to the rate.

Those are accounts receivables.

Yes, and that's a lot of money.

This is me.

Screening the average young woman with an MRI is kind of like driving to the grocery store in a Hummer.

Even though I don't have any money, I bought a book again.

To get some future benefit.

And 30 x 6, well that's the same thing as 3 x 6 x 10 or 180. So he's going to have 180 Chinese yuan.

Since we did it on the left hand side we also have to do it on the right hand side, and this is just seven one, times x plus one over one.

In the end, he will have obtained 250 Euros in the form of a basic income.

We're assuming nothing shady is happening with the Accounts Payable,

I use money for buying clothes.

'Cause it's a lot of money.

I'm just going to call that next_depth.