Listed below is the income statement for Tom and Sue Travels, Incorporated. Net sales Less: Cost...

 

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Listed below is the income statement for Tom and Sue Travels, Incorporated. Net sales Less: Cost of goods sold Gross profits TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End (in millions of dollars) 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 $ 17.600 8.000 $ 9.600 3.650 $5.950 2.800 $ 3.150 0.790 $ 2.360 0.496 $ 1.864 The CEO of Tom and Sue's wants the company to earn a net income of $2.700 million. Cost of goods sold is expected to be 60 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.256 million, and the firm's tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.700 million. Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.) Net sales million Listed below is the income statement for Tom and Sue Travels, Incorporated. Net sales Less: Cost of goods sold Gross profits TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End (in millions of dollars) 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 $ 17.600 8.000 $ 9.600 3.650 $5.950 2.800 $ 3.150 0.790 $ 2.360 0.496 $ 1.864 The CEO of Tom and Sue's wants the company to earn a net income of $2.700 million. Cost of goods sold is expected to be 60 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increase to $1.256 million, and the firm's tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.700 million. Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.) Net sales million