Navaria Inc. manufactures and sells chairlift mobility aids. These are chairlift systems designed for in-home use to aid persons with mobility challenges. The company sells its systems online and through a network of independent sales agents. Installation of the systems is done by independent contractors hired directly by Navaria’s customers. The following information was taken from Navaria’s financial records for the year ended June 30, 2024:

Required 

a. Prepare a multi-step statement of income for the year ended June 30, 2024, that reports expenses by nature. 

b. Prepare a multi-step statement of income for the year ended June 30, 2024, that reports expenses by function.

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(in thousands of dollars) Administrative expense Cost of goods sold Other expenses Financing expenses Interest revenue Income tax expense Sales revenue Engineering activities Research and development activities Sales and marketing activities Wages $1,927 774 3,586 $ 9,550 79,159 641 825 630 4,953 119,728 Rental of Equipment $65 33 0 Advertising $0 0 5,866 Depreciation $524 128 26