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

INCOME STATEMENT, 2014
(Figures in $ Thousands)
Revenue	$	7,500
Cost of goods sold		6,750
EBIT	$	750
Interest		150
Earnings before taxes	$	600
State and federal tax		240
Net income	$	360
Dividends		240
Additions to retained earnings	$	120

BALANCE SHEET (Year-End, 2014)
(Figures in $ Thousands)
Assets
Net working capital	$	750
Fixed assets		3,000
Total assets	$	3,750
Liabilities and shareholders' equity
Long-term debt	$	1,500
Shareholders' equity		2,250
Total liabilities and shareholders' equity	$	3,750

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

First stage pro forma statements:

PRO FORMA INCOME STATEMENT, 2015
(Figures in $ Thousands)
Revenue	$	8,250
Cost of goods sold		7,425
EBIT	$	825
Interest		150
Earnings before taxes	$	675
State and federal tax		270
Net income	$	405
Dividends		270
Additions to retained earnings	$	135

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	825
Fixed assets		3,300
Total assets	$	4,125
Liabilities and shareholders' equity
Long-term debt	$	1,500
Shareholders' equity		2,385
Total liabilities and shareholders' equity	$	3,885
Required external financing	$	240

Second stage pro forma balance sheet:

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	825
Fixed assets		3,300
Total assets	$	4,125
Liabilities and shareholders' equity
Long-term debt	$	1,740
Shareholders' equity		2,385
Total liabilities and shareholders' equity	$	4,125

How would Executive Fruits 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' equity
Total	$