HW Chapter 2A 7 Problem 2-37 Income Statement (LG2-1) 187 Listed below is the 2021 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2021 (in millions of dollarsi Net sales Less: Cost of goods sold Grass profits Less: other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) References Less: Depreciation Earnings before interest and taxes (EBIT) Mr Less: Interest Earnings before taxes (EST) Less: Taxes Net incone $17.000 .109 $9.700 3.708 $6.000 2.900 53.108 8.795 12.305 8.484 51.821 The CEO of Tom and Sue's wants the company to earn a net income of $2.750 million in 2022. Cost of goods sold is expected to be 50 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.261 million, and the firm's tax rate will be 21 percent Calculate the net sales needed to produce net income of $2.750 million (Enter your answer in millions of dollars rounded to 3 decimal places.) milon Help Save & Ex Submit Check my work HW Chapter 2A 7 1.87 points Problem 2-37 Income Statement (LG2-1) Listed below is the 2021 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2021 Net sales (in millions of dollars) Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income $17.800 9.100 $9.700 3.700 $ 6.000 2.908 3.100 0.795 $2.305 11.821 Help Save & Exit Submit Check my work The CEO of Tom and Sue's wants the company to earn a net income of $2.750 million in 2022. Cost of goods sold is expected to be 50 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.261 million, and the firm's tax rate will be 21 percent Calculate the net sales needed to produce net income of $2.750 million. (Enter your answer in milions of dollars rounded to 3 decimal places.) Nel sales mon