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 and minority interests	4,551
Other income	827
Research and development costs	5,737
Revenues	149,985
Selling, administrative and other expenses	17,532

Required:

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?
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Answer rating: 100% (QA)

Solution Multiplestep Income statement Revenues 149985 Cost of sales 118219 1Gross margin 31766 Sell... View the full answer