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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 $ 16.000
Less: Cost of goods sold 7.200
Gross profits $ 8.800
Less: Other operating expenses 3.250
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 5.550
Less: Depreciation 2.000
Earnings before interest and taxes (EBIT) $ 3.550
Less: Interest 0.750
Earnings before taxes (EBT) $ 2.800
Less: Taxes 0.588
Net income $ 2.212

The CEO of Tom and Sues wants the company to earn a net income of $2.300 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 $1.216 million, and the firms tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.300 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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