What does it mean to create a statement by function?

(in thousands of dollars) Administrative expenses $9,485 79,883 Cost of goods sold Other expenses 642 825 Financing expenses 632 Interest revenue Income tax expense 4,962 120,183 Sales revenue Rental of Wages Equipment Advertising Depreciation $1,923 $0 $524 Engineering activities $71 Research and development activities 770 36 0 128 Sales and marketing activities 3,579 0 5,887 27 repare a multi-step statement of income for the year ended June 30, 2020 that reports expenses by function. Navaria Inc. Statement of Income (in thousands of dollars)