It is budgeting time for Rod Co. The following assumptions were agreed upon for the next year after strategic planning, which covered a five-year horizon: 1. Sales are estimated to be at 70,000 units at its national selling price of P126. 2. Sales discounts are given to various customers at different rates, and the net to gross ratio is at 93%. 3. Markup on merchandise is at 45% of the invoice cost. Beginning inventory is P80,900 and is expected to be reduced by P15,000 at the end of the period. 4. Selling and administrative expenses are expected to be 15% of gross sales. 5. Depreciation is computed at P500,000. 6. Seventy- five percent (75%) of sales are on credit. Doubtful accounts expense is estimated to be 1.5% of credit sales. Required: What is the budgeted income statement for Rod Co.