6a.Multiple ways exist to measure liquidity. Which ratio is a better way (may provide a more accurate indication of the firms true liquidity) during periods of deteriorating business conditions?

6b.Explain briefly why: (7 points)

What are managements two choices for what to do with net profit? Why/when would they choose one over the other? (7 points)

16. What is XYZ Corp.s net cash flow, EBIT, operating cash flow, and free cash flow

XYZ Corp. (for 2020) Revenue $5,000,000 Wages: $1,000,000 D&A: $1,000,000

Property, Plant & Equipment investment: $1,500,000 Tax Rate: 35%

NOWC (2020): $750,000

NOWC (2019): $500,000