Prescott Football Manufacturing had the following operating results for 2019: sales = $30,774; cost of goods sold = $21,956; depreciation expense = $3,596; interest expense = $604; dividends paid = $897. At the beginning of the year, net fixed assets were $20,394, current assets were $1,973, and current liabilities were $5,108. At the end of the year, net fixed assets were $23,257, current assets were $4,579, and current liabilities were $3,269. The tax rate for 2019 was 23 percent. What is the operating cash flow for 2019?

a. 7756
b. 3596
c. 4122
d. 7540
e. 8830

The correct answer is option (A).

Explanation:

According to the scenario, the computation for the given data are as follows:

Operating cash flow = Sales - Cost of Goods Sold - Tax

Where, Tax = Sales - Cost of Goods Sold - Depreciation - Interest Expense × Rate of Tax

So, Tax = $30,774 - $21,956 - $3,596 - $604 × 23% = $1,062.14

By putting the value in the formula, we get

Operating Cash Flow = $30,774 - $21,956 - $1062.14

= $7,755.86

or = $7,756

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'