How to properly use functions-example.php

I'm trying to add code that would normally go in functions.php.

The child theme has a functions-example.php

I paste the code in there and rename to "function.php", not "functions.php"?

Then, do I leave it there...don't I need to move it directly into the theme folder, not the inc folder?

Lastly, do I need to copy functions.php from the parent theme and paste it in there first?

Thanks!