That assets, A for assets, is equal to

And it's essentially, what is the market saying the equity is worth?

The county took a tax assessment of this property last month.

It should start to make a little bit of intuitive sense

liabilities plus equity.

Scott's job is to evaluate the assets of companies.

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.

I cannot in all honesty say that this is now worth, that this is a 1 million asset.

How do we take their contributions to their jobs, their communities and their families, and convert that value into reputation capital?

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

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

Everyone with loans to Bank A all of a sudden gets afraid.

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

The book value of the assets, or what the accountants within the company are saying the assets are worth.

And that's not what matters.

But the market value or assets is essentially, what is the market saying the assets are worth?

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.

let me give you that piece of terminology, it just means net asset value.

This financial audit also includes an evaluation of the company's assets.

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.

We need flat land, we need 300 days of sunlight, and we need to be near a gas pipe.

My liabilities would be 145,000.

So what is the value per share?

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

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.

So the balance sheet is really trying to capture what your asset is worth at that point in time.

And we'll introduce debt later, because that's another variable that a lot of people don't think about when they

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