Example 3 Based on the following data prepare the income statement calculating costs by nature: No. Description 1. Dividends received 2. Interest received (accounted in previous period) 3. Calculated interest on bank loan Amount 6 000 4 200 1 000 4. Amortization 5. Initial value of sold tangible fixed assets 6. Losses caused by flood classified as extraordinary loss 15 000 9 600 1000 7. Value of impaired receivables 8. Write off of uncollectable interest receivable 9. Depreciation of sold tangible fixed asset 10. Revenue from selling finished goods 11. 12. 13. 14. 15. 16. Change in finished goods Revenue from sale of tangible fixed asset Provision for warranty repairs (set up) VAT accounted Value of sold shares of the company X (purchase price) Revenue from the sale of shares of the company X 17. Wages and salaries 18. Taxes and fees 19. Book value of sold materials 20. 21. Cost of liquidation of tangible fixed assets Change in materials 500 200 9 200 37 000 - 2 200 1 000 1 000 600 200 500 2 000 1000 1500 600 1000 22. Revenue from the sale of materials 1000 23. Income tax -20% of profit before tax