The CEO of Tom and Sues wants the company to earn a net income of $2.240 million in 2019. 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 $0.850 million, and the firms tax rate will be 30 percent.

Calculate the net sales needed to produce net income of $2.240 million.

Check work mode : This shows whet is correct or incorrect for the work you have completed so far. It does not indice my Listed below is the 2018 income statement for Tom and Sue Travels, Ind. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2018 (in millions of dollars) Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes, depreciation, and $16.000 7.200 8.800 3.250 amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income $ 5.55e 2.000 3.550 0.750 $2.800 8.755 2.045 The CEO of Tom and Sue's wants the company to earn a net income of $2.240 million in 2019. Cost of goods sold is expected to be 6 percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increas to $0.850 million, and the firm's tax rate will be 30 percent. Calculate the net sales needed to produce net income of $2.240 million. (Enter your answer in millions of dollars rounded to 3 decimal places.) Answer is complete but not entirely correct. Net sales $ 13.950 x million Prev 10 of 10 Next >