The following is the financial statement of Executive Fruit Company for the year ended December 2014.

INCOME STATEMENT, 2014(Figures in $ Thousands)Revenue$9,000Cost of goods sold8,100EBIT$900Interest180Earnings before taxes$720State and federal tax288Net income$432Dividends288Additions to retained earnings$144

BALANCE SHEET (Year-End, 2014)(Figures in $ Thousands)AssetsNet working capital$900Fixed assets3,600Total assets$4,500Liabilities and shareholders' equityLong-term debt$1,800Shareholders' equity2,700Total liabilities and shareholders' equity$4,500

The following are the first stage and second stage pro forma financial statements of Executive Fruit Companyfor the year ended December 2015.

First stage pro forma statements:

PRO FORMA INCOME STATEMENT, 2015(Figures in $ Thousands)Revenue$9,900Cost of goods sold8,910EBIT$990Interest180Earnings before taxes$810State and federal tax324Net income$486Dividends324Additions to retained earnings$162

PRO FORMA BALANCE SHEET (Year-End, 2015)(Figures in $ Thousands)AssetsNet working capital$990Fixed assets3,960Total assets$4,950Liabilities and shareholders' equityLong-term debt$1,800Shareholders' equity2,862Total liabilities and shareholders' equity$4,662Required external financing$288

Second stage pro forma balance sheet:

PRO FORMA BALANCE SHEET (Year-End, 2015)(Figures in $ Thousands)AssetsNet working capital$990Fixed assets3,960Total assets$4,950Liabilities and shareholders' equityLong-term debt$2,088Shareholders' equity2,862Total liabilities and shareholders' equity$4,950

How would Executive Fruit?s financial model change if the dividend payout ratio were cut to 1/3? Use the revised model to generate a new financial plan for 2015 assuming that debt is the balancing item. What would be the required external financing?(Do not round intermediate calculations.)

Dividends fall by $. Therefore, the requirement for external financing falls from $to $. On the other hand, shareholders' equity will be increased by $.

The right-hand side of the balance sheet becomes(Do not round intermediate calculations. Enter your answers in thousands.):

Long-term debt$Shareholders' equityTotal$