That assets, A for assets, is equal to

It should start to make a little bit of intuitive sense

liabilities plus equity.

I'll do that in yellow.

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.

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.

liabilities.

These are my assets, and these are my liabilities.

Malibu Equity and Investments.

So its assets.

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

My liabilities would be 145,000.

Right?

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. Roger Van Zant.

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

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 don't want to draw this box.

And rich, eh?

Communism, capitalism...

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

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.

And this is another important thing to think about.

And what I wrote here is, it has 4 billion of liabilities.

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

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

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.

Well, that means the ratio of the assets to the equity is 2 1.