EXERCISE #3 In year 2020, Filchi Products is expected to have a fifteen percent increase in sales against the 2019 sales of P400,000. The company projects a 10% profit margin at the end of 2020. Forty percent of net profit will be returned to the shareholders in the form of dividends. Required: Compute the amount to be added to retained earnings. (You may use this format.) Sales in 2019 Add: Amount of projected increase Projected sales in 2020 Multiply by: Profit margin rate Net profit Less: Amount of dividends Increase in retained earnings