Question: please do write all formula for each question 1. What is liquidity and why it is important? 2. Company J shows the following information on
please do write all formula for each question 
1. What is liquidity and why it is important? 2. Company J shows the following information on its 2020 income statement: Sales $200,000 Costs $110,000 Depreciation $9,000 Interest $14,000 a. The company's tax rate is 40%. If net working capital decreased by $20,000 during the year, calculate firm's cash flow from operating activities. b. In addition, you are told that the company's cash flow to bondholders and cash flow to shareholders were $9,000 and $4,200, respectively. During 2020, the net capital spending was $40,000. What was the increase or decrease in cash during 2020? Hint: You have two formulas for cash flow from asset (CFFA). 3. In 2019, XYZ corporation was formed by selling 100,000 shares of stocks (each $6) and issuing 200 bonds (each $2,000). Today, XYZ's stock is selling for $40 per share. As a result of changes in the interest rate, the market value of XYZ's bonds in total now is $370,000. a. In 2019, wat was the book value of the assets? b. What are the book value and market value of the firm now? c. What is the market value of the assets now? 4. Your retirement account (which is expected to yield 8% return per year) has a current balance of $50,000. a. How much would you need to invest each year in order to accumulate a total of $1,000,000 in 20 years? b. If you decide to invest monthly, how much would you need to invest each month in order to accumulate a total of $1,000,000 in 20 years? C. Compare the annual investments in part (a) with the total amount that you would invest in one year in part (b) (12 times the monthly investments). Which one is greater? Why
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