Cartier Custom Homes Inc. manufactures and sells pre-fab homes. These homes are manufactured in a controlled environment to ensure a consistent and higher quality, which results in greater customer satisfaction. The company sells its homes online and through a network of independent sales agents. Onsite installation of the homes is done by independent contractors hired directly by Cartier’s customers. The following information was taken from Cartier’s financial records for the year ended March 31, 2020:

Required

a. Prepare a multi-step statement of income for the year ended March 31, 2020, that reports expenses by nature.

b. Prepare a multi-step statement of income for the year ended March 31, 2020, that reports expenses by function.

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(in thousands of dollars) $ 10,645 Administrative expenses Cost of goods sold 1,650,159 Other expenses 1,761 Financing expenses 65,125 Dividend revenue 2,730 Income tax expense 167,753 2,671,928 Sales revenue Rental of Wages Equipment Advertising Depreciation Architectural activities $107,000 $1,765 $7,252 1,118 Research and development activities 5,764 6,300 Sales and marketing activities 2,596 3,678 500