Final answer:
The balance sheet of a merchandiser lists merchandise inventory as a current asset, while a manufacturer's balance sheet includes raw materials, work-in-progress, and finished goods. A trade deficit reflects a country importing more than it exports, as shown in the calculated merchandise balance of trade and current account balance deficits. A bank's balance sheet, which includes assets and liabilities, operates under similar principles.
Step-by-step explanation:
The question concerns the balance sheet comparisons between a merchandiser and a manufacturer. A merchandiser's balance sheet typically presents the merchandise inventory as a current asset, representing goods that are bought and then resold to customers. In contrast, a manufacturer's balance sheet will often show separated inventory accounts into raw materials, work-in-progress, and finished goods as they make their products in-house.
A trade deficit occurs when a country imports more than it exports, as demonstrated by the merchandise balance of trade, which is the difference between exports ($1,046 billion) and imports ($1,562 billion) resulting in a trade deficit of -$516 billion. Similarly, the current account balance, which includes the trade balance alongside other transactions like services and income, shows a deficit of -$419 billion, indicating that the country is spending more on foreign transactions than it is earning.
A bank's balance sheet functions similarly to that of businesses, listing assets and liabilities. The net worth of a bank, known as bank capital, is calculated by subtracting liabilities from assets. This demonstrates how financial entities manage their balance sheets, which is relevant to both merchandisers and manufacturers.