How does the itemized detailed estimation method work?

Liquidity Itemized Detailed Estimation Method

Liquidity = Current Assets - Current Liabilities

Current Assets = Cash + Accounts Receivable and Prepayments Inventory

Current Liabilities = Accounts Payable and Receivable in Advance

Cash = (Annual Salary and Benefit Expenses - Annual Other Expenses)/Turnover

Annual Other Expenses = Manufacturing Expenses Administrative expenses Finance costs Selling expenses - wages and benefits, depreciation, maintenance, amortization, repairs and interest expenses included in the above four items

Turnover = 360/minimum number of days required to turnover

Accounts receivable (prepaid) = annual operating costs/turnover

Inventory estimation includes all kinds of purchased raw materials, fuels, packaging, low-value consumables, work-in-progress and other materials. Low-value consumables, products in process, purchased goods, collaborative parts,

Homemade semi-finished products and finished products:

Outside purchased raw materials, fuels=yearly purchased materials and fuels cost/turnover times

Products in process=(yearly purchased raw materials, fuels, and power costs yearly wages and benefits yearly repair costs yearly other manufacturing costs)/turnover times

Finished products=yearly operating costs/turnover times

Completed products = yearly Operating costs/turnover

Accounts payable = (annual cost of purchased raw materials, fuel and power, spare parts)/turnover