Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 (in millions of dollars) Net sales $18.800 Less: Cost of goods sold 8.600 Gross profits $10.200 Less: Other operating expenses 3.950 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.250 Less: Depreciation 3.400 Earnings before interest and taxes (EBIT) $ 2.850 Less: Interest 0.820 Earnings before taxes (EBT) $ 2.030 Less: Taxes 0.426 Net income $ 1.604 T | The CEO of Tom and Sue's wants the company to earn a net income of $3.000 million in 2022. 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 $1.286 million, and the firm's tax rate will be 21 percent. Calculate the net sales needed to produce net income of $3.000 million. (Enter your answer in millions of dollars rounded to 3 decimal places.) Net sales million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started