He still has it.

Interest is nothing but rent.

So when you have an asset, if the asset is cash, the rent on it is interest.

I've leased it from the government and during the last five years,

You know that rental place on Boilston?

So I'm also solvent.

I'm looking for an apartment to rent.

So its assets.

So this is cost of renting a similar home.

That assets, A for assets, is equal to

Ok, this is your rental agreement in English.

Malibu Equity and Investments.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

So why would you just throw away this is the classic rent versus buy argument why would you throw away 900, where you could actually build equity paying 400 a month for the exact same place?

I want to rent this room to a student.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

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.

Some people, they'll make some set of assumptions and say, ah ha!

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.

You can make it only step up every year.

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.

I can do is... So he needs 100 gold pieces.

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.

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

UPS, and FedEx, and Postal Service.

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

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?