13. A business received an offer from an exporter for 20,000 units of product at $17 per unit. Acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price $21

Unit manufacturing costs:

Variable 13

Fixed 5

What is the amount of the gain or loss from the acceptance of the offer?

1. $35,000
2. $40,000
3. $60,000
4. $80,000

14. The following information is available from the current period financial statements:

Net income $140,000

Depreciation expense 28,000

Increase in accounts receivable 16,000

Increase in accounts payable 21,000

The net cash flow from operating activities using the indirect method is:

1. $131,000
2. $173,000
3. $107,000
4. $205,000