Final answer:
To calculate the merchandise balance and current account balance, one must fill in given tables with data on imported and exported goods and services, income payments, and then perform the necessary calculations. The LCNRV rule ensures inventory valuation is the lower of historical cost or market value for balance sheet reporting.
Step-by-step explanation:
Calculating Merchandise Balance and Current Account Balance
To determine the merchandise balance and the current account balance, you would typically use data provided in a case study or from a company's financial statements. This information is often presented in a table, such as Table 23.2 or Table 10.2, which you are tasked to fill using known information such as values for goods, services, and income payments. Once the table is completed, you calculate the merchandise balance by subtracting the total value of goods and services imported from the total value of goods and services exported. Similarly, to calculate the current account balance, you would also factor in net income payments, such as interest and dividends, and any unilateral transfers. These calculations provide insights into a country's or a company's trading position and financial interactions with the rest of the world.
Unfortunately, as the known information needed to fill the tables has not been provided, I cannot perform the actual calculations. Normally, you'd use the LCNRV rule, which stands for lower of cost or net realizable value, to report inventory on the balance sheet, ensuring that inventory is reported at the lesser of its historical cost or its market value. This rule is a conservative approach to inventory valuation that prevents overstatement of inventory worth and future profits.