PROBLEM 7-F BUDGETED NET INCOME Reima Inc. 2016 income statement is presented below. Sales P3,500,000 Operating costs 2,500,000 Earnings before interest and taxes P1,000,000 Interest expense 200,000 Earnings before taxes P800,000 Income tax (40%) 320,000 Net Income P480,000 Dividends (40%) P192,000 Addition to retained earnings P288,000 For 2017, the firm is forecasting a 40% increase in sales and that its year end operating costs will decline to 60% of sales. Tax rate, interest expense and dividend payout ratio are expected to remain constant. Required: What is the projected 2017 net income