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

INCOME STATEMENT, 2014
(Figures in $ Thousands)
Revenue	$	3,000
Cost of goods sold		2,700
EBIT	$	300
Interest		60
Earnings before taxes	$	240
State and federal tax		96
Net income	$	144
Dividends		96
Additions to retained earnings	$	48

BALANCE SHEET (Year-End, 2014)
(Figures in $ Thousands)
Assets
Net working capital	$	300
Fixed assets		1,200
Total assets	$	1,500
Liabilities and shareholders' equity
Long-term debt	$	600
Shareholders' equity		900
Total liabilities and shareholders' equity	$	1,500

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	$	3,300
Cost of goods sold		2,970
EBIT	$	330
Interest		60
Earnings before taxes	$	270
State and federal tax		108
Net income	$	162
Dividends		108
Additions to retained earnings	$	54

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	330
Fixed assets		1,320
Total assets	$	1,650
Liabilities and shareholders' equity
Long-term debt	$	600
Shareholders' equity		954
Total liabilities and shareholders' equity	$	1,554
Required external financing	$	96

Second stage pro forma balance sheet:

PRO FORMA BALANCE SHEET (Year-End, 2015)
(Figures in $ Thousands)
Assets
Net working capital	$	330
Fixed assets		1,320
Total assets	$	1,650
Liabilities and shareholders' equity
Long-term debt	$	696
Shareholders' equity		954
Total liabilities and shareholders' equity	$	1,650

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	$