Study the 2014 income statement of Kristie€™s Imports, Inc., and answer these questions about the company:

1. How much gross profit did Kristie€™s Imports earn on the sale of its products in 2014? How much was income from continuing operations? Net income?
2. At the end of 2014, what dollar amount of net income would most sophisticated investors use to predict Kristie€™s Imports€™ net income for 2015 and beyond? Name this item, give its amount, and state your reason.

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Kristie's Imports, Inc. Consolidated Stmnt of Operations (Adapted) Year Ended (In thousands except per share amounts) 2014 2013 Net sales Operating costs and expenses Cost of sales (induding buying and store occupancy costs) Selling, general, and administrative expenses Depreciation and amortization Total operating costs and expenses $1,917 425 $ 1,806,475 1,013,490 1,045,580 549,850 526,150 48,450 1,618,6151,620,180 298,810 186,295 55,275 Operating income (loss) Nonoperating (income) and expenses: Interest andinvestment income Interest expense Interest income, net Income (loss) from continuing operations before income taxes Provision (benefit) for income taxes Income (loss) from continuing operations Discontinued operations: Income (loss) from discontinued operations Net income (loss) 2,625) (2,710). 1,725 1630 (900) 1080) 299,710 187,375 69615 117.760 104.800 194 910 (2,400 280 Earnings (loss) per share from continuing operations. Basic Earnings (loss) per share from discontinued operations: Basic Earnings (loss) per share: Basic $2.64 1.62 (0.03) 0.00 $2.61 1.62