Catskill Regional Hospital has made its first pass forecast of the year 2021. Catskill plans to meet any external financing requirement by issuing long-term debt at an interrest rate of 5%. Complete Catskill's second pass of the 2021 forecast. (10)
	2020	2021-1st Pass	2021-2nd Pass
Revenues	$25,000	$27,500
Less: Variable costs	15,000	16,500
Less: Fixed costs	8000	8,800
EBIT	$2,000	$2,200
Interest (on new debt at 5%)	400	400
EBT	$1,600	$1,800
Taxes (40%)	$640	$720
Net income	$960	$1,080
Dividends (50%)	480	540
Addition to Retained Earnings	480	540
Cash	$300	$330
Accounts receivable	3,000	3,300
Inventories	3,000	3,300
Total Current Assets	6,300	6,930
Fixed assets	6,000	6,600
Total Assets	$18,600	$20,460
Accounts payable and accruals	$2,000	$2,200
Wages payable	2,000	2,200
Total Current Liabilities	4,000	4,400
Long-Term debt	6,000	6,000
Common stock	5,800	5,800
Retained earnings	2,800	3,340
Total Liabilities and Equity	18,600	19,540