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

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...

So over here you had another liability.

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

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

Accounts Payable is a liability

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

Our profit in the first period is 30,000.

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

Accounts Payable

Is it practical?

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.

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

Leave your money on the table.

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

I got the money for Skundi.

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.

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

Don't buy things on credit.

Yes, and that's a lot of money.

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.

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.

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

'Cause it's a lot of money.

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

We know from our example that we used that 60,000 to buy a 60,000 truck.

I came to buy goldfish.

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

So our formula says that the amount that I'll owe at the end of this is how much I borrowed, 1,000 times e, to my interest rate power, 0.25, times the number of years, times t.

This money will allow me to buy a car.

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

This is me.

Those are accounts receivables.

I use money for buying clothes.

Today we can't get anything without money.

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.

How many shall we buy Chef?

Rich matrons pay well to be pleasured by the bravest champions.

So the beginning of month 2, which is the end of month 1,

To get some future benefit.

They've made it conversational.

The only way I could afford it is with the nice, fat bonus they gave me at my last job.

After those ten years that you didn't die, nothing really happens you just keep on living

Whereas this rickshaw wale in India could save up and buy antibiotics and he could buy refrigeration.