Answer: 1. SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2021 ($ in 000s) Sales revenue .................................................................. $15,300 Cost of goods sold ......................................................... 6,200 Gross profit ..................................................................... 9,100 Operating expenses: Selling expense ............................................................ $1,300 General and administrative expense ............................ 800 Restructuring costs ...................................................... 1,200 Total operating expenses ........................................ 3,300 Operating income ........................................................... 5,800 Other income (expense): Loss on sales of investments ....................................... (220) Interest expense ........................................................... (180) Interest revenue ........................................................... 40 Other income, net ..................................................... (360) Income from continuing operations before income taxes 5,440 Income tax expense ........................................................ 1,360 Income from continuing operations ............................... 4,080 Discontinued operations: Income from operations of discontinued component (including gain on disposal of $1,400) ...................... 840 Income tax expense ..................................................... (210) Income on discontinued operations ................................ 630 Net income ..................................................................... 4,710 Other comprehensive income, net of tax: Gain on debt securities .............................................................. 240 Foreign currency translation adjustment .................... (180) Total other comprehensive income ......................... 60 Comprehensive income ................................................. $ 4,770 Earnings per share:* Income from continuing operations $3.40 Discontinued operations 0.53 Net income $3.93 *Weighted-average shares = 1,000,000 + (400,000÷2) = 1,200,000 2. SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2021 ($ in 000s) Net income ....................................................................... $4,710 Other comprehensive income, net of tax: Gain on debt securities.................................................... $240 Foreign currency translation adjustment ........................ (180) Total other comprehensive income ............................. 60 Comprehensive income .................................................... $4,770