The table below lists, in alphabetical order, items (and the corresponding amounts) excerpted from the DaimlerChrysler consolidated income statement for the accounting year ending on 31 December 1999. All numbers are in millions of Euros ().

Cost of sales 118,219

Extraordinary items (net revenue) 640

Financial income 333

Income taxes & minority interests 4,551

Other income 827

Research & development costs 5,737

Revenues 149,985

Selling, administrative & other expenses 17,532

Required (submit in word documents):

1. Prepare the income statement in a multiple-step format, showing separately gross margin, income before financial income, income taxes, and extraordinary items, income before income taxes and extraordinary items, income before extraordinary items, and net income.

2. Is the income statement organized by nature or by function?