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

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

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

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

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.

I'll do it in brown.

I borrow money.

Because there's a situation where, let's say that I do this.

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

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...

I don't think I would ever shop until I had to go into debt because of it.

Nope. Bill collectors.

So bonds are essentially you are borrowing from the public markets again.

And what are my liabilities?

Everyone talks about money and currencies. Essentially we borrowed output from other people.

It's not coming back, booth.

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 let's say that they have that there are 10 million shares.

So the way that works is let's say that I need to buy my wife a nice gift for her birthday that's tomorrow and I want to borrow 500.

Don't borrow more money than you can help.

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.

He borrowed money from the bank to finance his home.

We borrowed money at high interest.

This is now at 3 .

Well, the 900 gold pieces, that then goes to the workers.

Accounts Payable

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

I had to borrow money to purchase the car.

So, in general, the amount of money you owed me at the end of the year was the amount you borrowed.

They borrow money.

We also made this ..

Trying to borrow money.

I don't owe him any money.

This is a liability.

So in this case it would be 120, and in year three,

Can I borrow cash with this card?

Is it possible to borrow money?

And let's say that's all of their liabilities.

I borrowed money from my friends.

I borrowed some money from a friend.