But they're unsecured.

Central Europe, unsecured.

Those are accounts receivables.

Warning this is an unsecured session

So we could call this senior unsecured.

So both cash and Accounts Receivables are assets.

You could do it with receivables from a company.

Let's say there's 2 million of senior unsecured.

Because this 500,000 loan is not an unsecured loan.

And then some of the unsecured, the more junior

Then you might have here, you might have senior unsecured.

I'll make a whole video, probably a whole series of videos, on accounts receivables.

These guys, right here, the senior unsecured, they'll get the next 2 million.

And this unsecured guy down here, he's not going to get as much equity.

Let me just say that every unsecured transaction is a good example of a prisoner's dilemma.

And let's say that this is 2 million of subordinated subordinated just means they're not senior unsecured.

An unsecured Loan to Coleman s town manager on a check dated one week before the new auditorium contract was even awarded.

But because you've got the 400 in cash, it's going to disappear from receivables, and then go into cash, cause you actually got it.

So an increase in accounts receivables is actually less cash than you would have otherwise gotten so this is negative 400 for your cash flow.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

So you did no catering in month 3, and because you did no catering in month 3, you have 0 revenue in month 3, and then you also have 0 expenses, the way that you account for the 400 that you got, is that your accounts receivables goes to 0, and that goes to cash, so the negative 100 you add 400 to it, so it becomes positive 300.