Listed below is the 2018 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2018 (in millions of dollars) Net sales $19.800 Less: Cost of goods sold 9.100 Gross profits $10.700 Less: Other operating expenses 4.200 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.500 Less: Depreciation 3.900 Earnings before interest and taxes (EBIT) $ 2.600 Less: Interest 0.845 Earnings before taxes (EBT) $ 1.755 Less: Taxes 0.655 Net income $ 1.100 The CEO of Tom and Sues wants the company to earn a net income of $3.570 million in 2019. 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 $0.945 million, and the firms tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.570 million. (Enter your answer in millions of dollars rounded to 3 decimal places.) Net sales million
Listed below is the 2018 income statement for Tom and Sue Travels, In
Listed below is the 2018 income statement for Tom and Sue Travels, Inc. TOM AND SUE TRAVELS, INC. Income Statement for Year Ending December 31, 2018 (in millions of dollars) Net sales $19.800 Less: Cost of goods sold 9.100 Gross profits $10.700 Less: Other operating expenses 4.200 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 6.500 Less: Depreciation 3.900 Earnings before interest and taxes (EBIT) $ 2.600 Less: Interest 0.845 Earnings before taxes (EBT) $ 1.755 Less: Taxes 0.655 Net income $ 1.100 The CEO of Tom and Sues wants the company to earn a net income of $3.570 million in 2019. 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 $0.945 million, and the firms tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.570 million. (Enter your answer in millions of dollars rounded to 3 decimal places.) Net sales million
0 Comments