So over here you had another liability.

Most times the liabilities are pretty easy to get a handle on.

So now I have this liability.

This is the angel investor, and this is all of us down here, and all of this is equity.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

liabilities are overstated.

And let's say that's all of their liabilities.

So let's say these are debt holders right here.

I owe the bank 750,000.

liabilities.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

And they got an asset called loan to Bank A.

And then we have a little bit of cash on top of that.

This was equity.

What I could do is maybe 100 of it,

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

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

So you have an Accounts Payable liability of 100 sorry, at this point we had no Accounts Payable liability and then after the end of the month we have an Accounts Payable liability of 100.

Consumption and poor quality

These are deposits that I owe to people.

This company now is completely delevered.

For the liability side of my balance sheet

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

I think I had called it Loan C.

That we'll just put generally as liability.

Now no matter what, this company cannot go bankrupt.

I had 100 of cash, no accounts receiveables,

So the only liability is this 5,000.

Let me just make everything clear.

These are the assets that our five buddies have together.

So in this case, our assets are 250,000.

My assets are 250,000.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

So going back to our balance sheet, we had a 10 million asset, we had 5 million of debt.

These are my assets.

It should start to make a little bit of intuitive sense