And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

And then the other 250,000 essentially went to an expense called depreciation, which is right there.

So, for example, in this one, at the beginning of the period, before the 2007 income statement, the asset was worth 50,000.

Ancillary would be number 2 referred revenue.

So therefore, I put it down there.

If you've watched the video on depreciation and amortization, this might even include the depreciation on some of the physical assets they've bought, or maybe the amortization on the rights to the name Super Pizzeria.

They're usable over two years.

And let's say we do a straight line depreciation, which means we essentially depreciate the asset evenly over its lifespan.

And then their SG amp A is the same.

So I'll just write down the number first.

Let's calculate our total liabilities.

And there's all sorts of intangible assets that you might amortize.

Another type of sale is an actual asset sale, direct sale.

This is the interest rate you assume.

And then instead of having an equipment expense, instead of having that expense, they'll have an equipment depreciation expense.

And I'm running out of time in this video, and I'll cover it in the next, but you might have also heard of the word

And then when I have 1 10 of two million shares,

Really, in my mind, it's very similar to depreciation.

We decided that we needed to put our money where our mouth is.

Well, you know depreciation, man.

So instead of doing that, what you do is, at the beginning of the period you say, we have acquired a patent, an asset, that is worth 4,000, And then every year over the life of the patent, we'd amortize a fourth of it since it has a four year life.

And this is just an arguably long winded way of saying that the way you account for this is you spread out the cost over time, over its useful life, and this spreading out is called the depreciation of an asset.

And just so you know, most corporate debt actually works that way.

So let me draw that out.

Now we have 225,000 in cash.

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.

This is all a review of the depreciation video.

To figure out the cash from operations from actually how much cash the operations are producing.

So no cash went out of the door.

I can do is... So he needs 100 gold pieces.

Frobisher's net worth is upward of two and a half billion dollars.

So its assets.

Depreciation is tangible.

I'll do that in yellow.

With private ownership nonexistent, our wellbeing is on the rise.

But let's just look at what they're saying.

That assets, A for assets, is equal to

left hand side of the equation.

If you divide 50,000 by 4, it's 12,500.

No, we didn't.

That's just the gasoline cost.

Look. This company over here, we're going to issue more shares, for more people to contribute money

And this is another important thing to think about.

So 20,000 over 3 years is the life of that truck.

Personal fortune assessed over fifteen million. He'll leave plenty, I tell you.