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

INCOME STATEMENT, 2014
(Figures in $ Thousands)
Revenue	$	5,500
Cost of goods sold		4,950
EBIT	$	550
Interest		110
Earnings before taxes	$	440
State and federal tax		176
Net income	$	264
Dividends		176
Additions to retained earnings	$	88

BALANCE SHEET (Year-End, 2014)
(Figures in $ Thousands)
Assets
Net working capital	$	550
Fixed assets		2,200
Total assets	$	2,750
Liabilities and shareholders' equity
Long-term debt	$	1,100
Shareholders' equity		1,650
Total liabilities and shareholders' equity	$	2,750

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	$	6,050
Cost of goods sold		5,445
EBIT	$	605
Interest		110
Earnings before taxes	$	495
State and federal tax		198
Net income	$	297
Dividends		198
Additions to retained earnings	$	99

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	605
Fixed assets		2,420
Total assets	$	3,025
Liabilities and shareholders' equity
Long-term debt	$	1,100
Shareholders' equity		1,749
Total liabilities and shareholders' equity	$	2,849
Required external financing	$	176

Second stage pro forma balance sheet:

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	605
Fixed assets		2,420
Total assets	$	3,025
Liabilities and shareholders' equity
Long-term debt	$	1,276
Shareholders' equity		1,749
Total liabilities and shareholders' equity	$	3,025

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	$