I guess you could say non cash assets, right?

This is cash above and beyond what's needed in the cash register.

So for example, cash is an asset.

To get some future benefit.

Interest is nothing but rent.

So you can say assets of the firm.

I have factory tools worth 500,000, and then that cash will go away.

An asset is something that's going to give you some future economic benefit.

Now if you take this part over here all of the assets are 400, 400 100 in Liabilities still gets you to 300 in Equity.

You might be curious about hey, what's all this current asset business?

These are demand accounts.

I know this gets a little confusing, but it all ends up being valuing the assets as you emerge from bankruptcy.

So the customer is going to give you cash in the future.

The bank is going to be able to fulfill its promise.

Notice, when I did this balance sheet

I don't know if someone dancing for you is an actual economic benefit, but you get the idea.

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

The firm went under due to lack of capital.

No matter how bad it was economically, he always got himself paid.

Any money go missing lately?

The government should invest more money in industry.

Let's stick with gold.

So this is lending some cash.

I guess I could, too.

So its assets.

The industry is heavily dependent on government funding.

So I have 300, 400, 700, 1,000.

I'll do that in yellow.

Yes, it's an enterprise.

That assets, A for assets, is equal to

it's like 71 . Right. 7 times 7 is 49 71 .

Let's say this is generating cash.

But if it generates at least 900 gold pieces of future wealth, then this is a real asset, right?

Do Low Interest Rates Ensure High Asset Prices?

Chances.Look, just think of this as a small deductible on a 2 billion insurance policy.

Let me clear this.

But when I talk about the asset, I'm talking about only the operating assets.

This is day 10 in this alternate universe.

Malibu Equity and Investments.

Now, the angel investor, if we value this at 5 million, he'll give us 5 million more.

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

So obviously there's no two companies that are identical in this way, but let's say that they are.

Local finance are bankrolling the industrial promotion program.

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

nothing but a communist cell.