Following are some items often reported in corporate income statements. Operating Income Gross Prot

Following are some items often reported in corporate income statements.
• Operating Income
• Gross Profit
• Discontinued Operations
• Net Income
• Extraordinary Loss
• Income from Continuing Operations
Required:
(a) List these items in their proper order in a corporate income statement.
(b) Which, if any, of these items will be shown ‘‘net of tax’’?
(c) Why are extraordinary items included as separate components of a corporate income statement?
(d) If you were going to make a judgment about a company’s future financial performance, on which income statement line would you base that judgment? Explain the reason for your answer.