Study the 2010 (not 2011) income statement of Household Imports, Inc., and answer these questions about the company:

1. How much gross profit did Household earn on the sale of its products? How much was income from continuing operations? Net income?
2. At the end of 2010, what dollar amount of net income would most sophisticated investors use to predict Households net income for 2011 and beyond? Name this item, give its amount, and state yourreason.

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Household Imports, Inc. Consolidated Statement of Operations (Adapted) Year Ended (In thousands except per share amounts) 2010 2009 1 Net sales $1,825,775 $1,806,293 Operating costs and expenses: 2 Cost of sales (including buying and store occupancy costs) 3 ,121,697 1,045,380 526,550 48,750 1,726,222 1,620.680 99,553 18513 Selling, general, and administrative expenses 4 549,250 55,275 ………………… Depreciation and amortizatio 5 Operating income (loss) Nonoperating (income) and expenses: 6 Interest and investment income 7 Interest expense (2,665) 1,785 (880) 100,433 36,384 64,049 (2,760) 1,610 (1,150) 8 Income (loss) from continuing operations before income taxes 9 Provision (benefit) for income taxes 10 Income (loss) from continuing operations 11 Discontinued operations: 12 Income (loss) from discontinued operations including write 186,763 69,515 117,248 ... 270 down of assets held for sale of $7,993 in 2011) Income tax savin (2,500) 13 270 $ 61,549 117,518 (2,500) 15 Net income (loss) Earnings (loss) per share from continuing operations: Earnings (loss) per share from discontinued operations: Earnings (loss) per share