That assets, A for assets, is equal to

I'll do that in yellow.

Now we have 3,000 apples being produced, because these were really good investments.

And then I asked for verification.

It should start to make a little bit of intuitive sense

liabilities plus equity.

Capital, land and labor are the three key factors of production.

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.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

Remember liabilities plus equities are equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

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

Right?

Mmhm. It's a real estate investment.

liabilities.

Just think of the benefits when it comes to jobs, productivity, employment, child nutrition, maternal mortality, literacy and much, much more.

And as an economist, we can also look at that side of the story. These are people who are productive agents in the economy.

These are my assets, and these are my liabilities.

liabilities plus equity is equal to assets.

My liabilities would be 145,000.

The assets are generating this.

These are their assets, just to get all the labelling right.

that assets are equal to liability plus equity.

What's my equity?

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

I'm worth 11,000.

So its assets.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

Just smart people moving bits. Different rules.

If you take an MBA, they'll write it down, and it looks

That's the European average for new cars.

Communism, capitalism...

Well written. By me.

like an equation, but it's assets is equal to liabilities plus equity.

I did some quick calculations.

Now, I want you to just look really close up onto what's happened there.

In Japan, only women are entitled to take the national obstetrics exam.

Malibu Equity and Investments.

So anyway, what happens in Chapter 11?

Remember the shares are split of the owner's equities not the split of the assets