The Balance Sheet – Net Worth, Assets, Liabilities

Balance Sheet B.S.

The company's equity at this point looks like this:

 500,000 Preferred stock

1,000,000 Common stock

Note that at inception, A and B owned the company 50-50, half-sies; now each owns 33%, assuming a successful outcome. They own somewhere between that number and the square root of zero in a less successful outcome.

The Net Worth of the company is now $500,000. It's just the cash.

There is $1,000,000 of perceived value here, though. Why? What did Reid buy? He's a savvy guy and...