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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$ 18.400

Less: Cost of goods sold8.400

Gross profits$ 10.000

Less: Other operating expenses3.850

Earnings before interest, taxes, depreciation, and amortization (EBITDA)$ 6.150

Less: Depreciation3.200

Earnings before interest and taxes (EBIT)$ 2.950

Less: Interest0.810

Earnings before taxes (EBT)$ 2.140

Less: Taxes0.449

Net income$ 1.691

The CEO of Tom and Sues wants the company to earn a net income of $2.900 million. 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 $1.276 million, and the firms tax rate will be 21 percent. Calculate the net sales needed to produce net income of $2.900 million.

Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.)

Problem 2-35 Spreadsheet Problem: Free Cash Flow (LG2-5) Rebecky's Flowers 4U, Incorporated, had free cash flows during 2024 of \$54 million, NOPAT of $104 million, and depreciation of \$26 million. Using this information, fill in the blanks on Rebecky's balance sheet below. Note: Enter your answers in millions of dollars. (i.e., Enter 10,000,000 as 10 .)

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