Reference no: EM131192502

Listed below is the 2015 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2015 (in millions of dollars) Net sales $ 19.000 Less: Cost of goods sold 8.700 Gross profits $ 10.300 Less: Other operating expenses 4.000 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.300 Less: Depreciation 3.500 Earnings before interest and taxes (EBIT) $ 2.800 Less: Interest 0.825 Earnings before taxes (EBT) $ 1.975 Less: Taxes 0.710 Net income $ 1.265 The CEO of Tom and Sue’s wants the company to earn a net income of $3.290 million in 2013. 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 $0.925 million, and the firm’s tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.290 million. (Enter your answer in millions of dollars rounded to 3 decimal places.)