1. Analysis of the first floor: 1. Inventory includes raw and auxiliary materials, packaging materials, low-value consumables and inventory goods. 2. When producing goods, no matter how big the cost is, it is also included in the current commodity cost, which directly affects the subjects as the main business cost (only appears when selling goods or providing services). The reason why there is no profit in the income statement may be that there is no sales of goods or services, and the sales price = the cost of goods. If the profit is negative, the cost can only be greater than the sales price. 3. There is a lot of inventory, which affects the flow of funds. 4. Assets = owner's equity+liabilities. There are many reasons that affect the increase of assets. If I convert monetary funds into inventory and the equation remains the same, then this argument at the first level does not hold. The second floor is not comprehensive. 1, the backlog of raw materials, auxiliary materials and packaging materials has greatly affected the flow of funds. Although both inventory and monetary funds are liquid assets, monetary funds are more liquid, and enterprises are more inclined to choose monetary funds among them. 2, the backlog of goods, increase intangible costs (such as warehouse management, etc.). ), the income of enterprises will be reduced. Generally speaking: monetary funds → means of production (raw materials, direct labor costs, fuel power costs, manufacturing costs) → commodities. When there is a backlog of commodities, the circulation of funds will eventually be blocked, and enterprises may face a situation of being unable to operate. 3. For the sake of business performance, enterprises may overstock inventory. This may not be a real backlog. (1) the product has been sold, but the cost is greater than the sales price, and the enterprise is losing money. Enterprises can choose not to carry out accounting treatment on sales business, so that the financial statements do not reflect the negative situation of enterprises; ② The output tax in the current month is greater than the input tax, and VAT is required. Enterprises can choose not to carry out accounting treatment on some sales business and postpone it to the next period, thus paying less VAT; (3) Sales business is not accounted for at the end of the quarter, which reduces corporate profits and pays less income tax; (4) hoarding goods and selling them at a high price in an appropriate period in order to obtain greater benefits is only a personal point of view.