Study the 2012 income statement of Original Imports, Inc., and answer these questions about the company:

1. How much gross profit did Original earn on the sale of its products in 2012? How much was income from continuing operations? Net income?
2. At the end of 2012, what dollar amount of net income would most sophisticated investors use to predict Original€™s net income for 2013 and beyond? Name this item, give its amount, and state yourreason.

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Original Imports, Inc. Consolidated Statement of Operations (Adapted) Year Ended (In thousands except per share amounts) 2012 2011 1 Net sales $1,825,425 1,806,475 Operating costs and expenses: 2 Cost of sales (including buying and store occupancy costs) 3 Selling, general, and administrative expenses 4 Depreciation and amortization 1,121,490 1,045,580 549,850526,150 48,450 1,726,615 1,620,180 186,295 55,275 5 Operating income (loss) 98,810 Nonoperating (income) and expenses 6 Interest and investment income 7 Interest expense (2,625) 1,725 (900) (2,710) 1,630 (1,080) 8 Income (los) from continuing operations before income taxes 99,710 187,375 69,615 117,760 9 Provision (benefit) for income taxes 10 Income (loss) from continuing operations 11 Discontinued operations 12 Income (loss) from discontinued operations 13 Net income (loss) 36,684 63,026 280 $ 60,626 S 118,040 (2,400) Earnings (loss) per share from continuing operations: Earnings (loss) per share from discontinued operations: Earnings (loss) per share: 14 Basic $ 0.391.62 S (0.03) S0.00 $ 0.36 1.62 15 Basic 16 Basic IMi