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Listed below is the income statement for Tom and Sue Travels, Incorporated. TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End (in millions of

Listed below is the income statement for Tom and Sue Travels, Incorporated.

TOM AND SUE TRAVELS, INCORPORATED
Income Statement for Year End
(in millions of dollars)
Net sales $ 16.200
Less: Cost of goods sold 7.300
Gross profits $ 8.900
Less: Other operating expenses 3.300
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 5.600
Less: Depreciation 2.100
Earnings before interest and taxes (EBIT) $ 3.500
Less: Interest 0.755
Earnings before taxes (EBT) $ 2.745
Less: Taxes 0.576
Net income $ 2.169

The CEO of Tom and Sues wants the company to earn a net income of $2.350 million. 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 $1.221 million, and the firms tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.350 million.

Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.)

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