That assets, A for assets, is equal to

It should start to make a little bit of intuitive sense

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

liabilities plus equity.

I'll do that in yellow.

And then I asked for verification.

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.

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

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

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.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

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

Right?

Mmhm. It's a real estate investment.

liabilities.

These are my assets, and these are my liabilities.

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.

So its assets.

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

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

Just smart people moving bits. Different rules.

My liabilities would be 145,000.

The assets are generating this.

Communism, capitalism...

Well written. By me.

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

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

that assets are equal to liability plus equity.

What's my equity?

Malibu Equity and Investments.

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

And we have 23 billion in liabilities.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

I'm worth 11,000.

I don't want to draw this box.

And rich, eh?

I did some quick calculations.

I can't believe it.