Compile with the package statement

[Ransika deSilva]

Hello all,
I have 2 questions.
1) How to compile a program with the package statement. I mean when the file is compiled it should go to the correct folder specified by the package decleration.
2)
package abc;
class Cl1 {
}
package xyz;
import abc.*;
class Cl2 extends Cl2{
}

If the Cl1 class is not compiled, if you compile the Cl2 java file does it give compiler error saying Cl1 was not compiled or can not find Cl1? or does it compile the base class as well?