Confusing collar pattern!


I am new to using this forum and I am in desperate need of help finishing this cardigan:

I just finished the “Buttonband and Collar” section and I am now working on the “Collar shaping” section. I have been working: 1st row (RS) K2. (P1. K1) 3 times. K1. 2nd row (K1. yf. Sl1P. yb) 4 times for the length of the cardigan. This part has been no sweat! I am now trying to follow the pattern for collar shaping which states “1st row (RS) inc 1 st in first st. Pat to last st. K1. 2nd row K1. Knit all the knit sts and slip all the purl sts as they appear, taking inc sts into pat” ??? I have tried interpreting this many different ways but I keep coming up with sts as shown in the attached image.

If anyone has any advice or understands what this part of the pattern is asking I would certainly appreciate hearing it!!

Thanks a bunch

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Welcome to KH!
Great looking jacket.
You want to make sure that the columns of knits and purls stay aligned. You can do this by adding the increased stitch into the written pattern row but it’s much easier to look at your knitting and use that as a guide.
Work the increase whatever way you like and on the next row, incorporate it into the pattern either as a purl or a knit stitch. You want to maintain the columns of knit and purls sts throughout the shaping of the collar.