The Least Cost or Market Value Method (LCM) is based on the fact that when investors value a company’s inventory, these assets must be shown on the balance sheet either at market value or historical cost.
Market marking can provide a more accurate figure of the present value of a company’s assets based on what the company can get in exchange for the asset under current market conditions.
Net cash, the figure that is reported in a company’s financial statements, is calculated by subtracting the company’s total liabilities from its total cash.