Problem $2-33$ Income Statement $($LG$2-1)$

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 $ $16\mathrm{.}200$

Less: Cost of goods sold $7\mathrm{.}300$

Gross profits $ $8\mathrm{.}900$

Less: Other operating expenses $3\mathrm{.}300$

Earnings before interest, taxes, depreciation, and amortization $($EBITDA$)$ $ $5\mathrm{.}600$

Less: Depreciation $2\mathrm{.}100$

Earnings before interest and taxes $($EBIT$)$ $ $3\mathrm{.}500$

Less: Interest $0\mathrm{.}755$

Earnings before taxes $($EBT$)$ $ $2\mathrm{.}745$

Less: Taxes $0\mathrm{.}576$

Net income $ $2\mathrm{.}169$

The CEO of Tom and Sue$$s wants the company to earn a net income of $$2\mathrm{.}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 $$1\mathrm{.}221$ million, and the firm$$s tax rate will be $21$ percent. Calculate the net sales needed to produce net income of $$2\mathrm{.}350$ million.

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