The following is the financial statement of Executive Fruit Company for the year ended December 2014.
Please see attached documentThe 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 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' equity     Total $   The following is the financial statement of Executive Fruit Company for the year ended
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