I still have no liabilities

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

And so liabilities plus equity is equal to assets.

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

So its assets.

So this is Company let me do a new color let's say we're dealing with Company x right here.

That assets, A for assets, is equal to

So anyway, what happens in Chapter 11?

Malibu Equity and Investments.

Andrew,you'll analyze the SEC filings.

I don't want to draw this box.

And rich, eh?

And I'm going to manage this money right over here, and I'm just going to take a percentage of the total assets under management

Deposits equal liabilities from a bank's point of view.

I'll do that in yellow.

In this example that I did in the previous video, it was the pre tax return on asset.

If you can't pay the debt, the bank comes and takes your home.

So their equity was actually 20,000 plus the 150,000 that they got from just the increasing asset value if they didn't enter into this transaction.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

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.

Notice the equity doesn't change.

And you get a 6 billion market cap.

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

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.

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.

So what is left over for me?

We said, and we learned it in the first video, and we

And then you had the equity, which is essentially the total assets minus the liability.

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

So let's say when we liquidate it so we go into bankruptcy and essentially all of the assets are taken into possession by the bankruptcy court they're going to sell these assets.

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.