17. Why does a special order decision frequently ignore fixed overhead?

18. If an asset is sold at a gain, why is the gain deducted from net income when computing the net cash flows from operating activities under the indirect method?

19. On its income statement for a recent year, Twin Cities Airlines, Inc. reported a net loss of $68 million from operations. On its statement of cash flows, it reported $457 million of cash flows from operating activities. Explain this apparent contradiction between the loss and the positive cash flows.