Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows:

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $206,000General and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 41,000Net cash used by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,000Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?. . . . . . . . . . . . . 26,000Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,000Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372,000Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000Other selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

a. Calculate income from operations (operating income) for the year ended December 31, 2019.

b. Calculate net income for the year ended December 31, 2019.

Exhibit 2-2

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MAIN STREET STORE INC. Income Statement For the Year Ended August 31, 2020 Net sales ... $1,200,000 Cost of goods sold 850,000 $ 350,000 Gross profit Selling, general, and administrative expenses 311,000 Income from operations 39,000 Interest expense 9,000 Income before taxes 30,000 12,000 Income taxes . 18,000 Net income %24 Earnings per share of common stock outstanding 24 1.80