(Solved): Problem 2-37 Income Statement (LG2-1) Listed below is the 2021 income statement for Tom and Sue Tr ...

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 $18.200 8.300 Less: Cost of goods sold Gross profits $9.900 3.800 Less: Other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.100 Less: Depreciation 3.100 Earnings before interest and taxes (EBIT) $ 3.000 Less: Interest 0.805 Earnings before taxes (EBT) Less: Taxes $ 2.195 0.461 $ 1.734 Net income The CEO of Tom and Sue's wants the company to earn a net income of $2.850 million in 2022. 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 $1.271 million, and the firm's tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.850 million. (Enter your answer in millions of dollars rounded to 3 decimal places.) Net sales million