Windswept, Inc. 2017 Income Statement ($ in millions)

Net sales $9,700
Cost of goods sold 7,800
Depreciation 395
Earnings before interest and taxes $1,505
Interest paid 94 Taxable income $1,411
Taxes 494
Net income $917

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
2009 2010 2009 2010
Cash $290 $320 Accounts payable $1,630 $1,885
Accounts rec. 1,120 1,020 Long-term debt 1,180 1,340
Inventory 2,000 1,775 Common stock $3,500 $3,080
Total $3,410 $3,115 Retained earnings 670 920
Net fixed assets 3,570 4,110
Total assets $6,980 $7,225 Total liab. & equity $6,980 $7,225

a. What is the days' sales in receivables? (use 2010 values)
b. Windswept, Inc. has 560 million shares of stock outstanding. Its price-earnings ratio for 2010 is 12. What is the market price per share of stock?

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x, y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.