To follow is the 2021 income statement of Kurzic Imports, Inc.

1. How much gross profit did Kurzic earn on the sale of its products in 2021? How much was income from continuing operations? How much net income did the company earn? 

2. At the end of 2021, what dollar amount of income would most sophisticated investors use to predict Kurzic’s net income for 2022 and beyond? Name this item, give its amount, and state your reason.

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123 A1 Kurzic Imports, Inc. Consolidated Statement of Operations (Adapted) 3 (In thousands except per share amounts) 4 5 Net sales 6 Operating costs and expenses: 7 Cost of sales (including buying and store occupancy costs) 8 Selling, general, and administrative expenses 9 Depreciation and amortization 10 Total operating costs and expenses 11 Operating income (loss) 12 Nonoperating (income) and expenses: 13 Interest and investment income 14 Interest expense 15 Interest income, net 16 Income (loss) from continuing operations before income taxes 17 Provision (benefit) for income taxes 18 Income (loss) from continuing operations 19 Discontinued operations: 20 Income (loss) from discontinued operations 21 Net income (loss) 22 23 Earnings (loss) per share from continuing operations: Basic 24 25 Earnings (loss) per share from discontinued operations: Basic 26 27 Earnings (loss) per share: Basic 28 Year Ended 2020 $ 1,806,092 $ 1,825,975 1,045,880 1,121,690 526,060 549,850 48,750 55,675 2021 $ $ $ $ 1,620,690 1,727,215 185,402 98,760 2,740 (1,640) 1,100 186,502 69,315 $ 117,187 $ 210 117,397 $ 1.52 $ 0.00 $ 1.52 $ 2,675 (1,725) 950 99,710 34,700 65,010 (2,300) 62,710 0.85 (0.03) 0.82