Balance Sheet Liabilities and Stockholders' Equity 0 Accounts payable 10 Accrued wages 0 Accrued taxes 0 Current liabilities 0 Notes payable Long-term debt Common stock Retained earnings 0 Total liabilities and stockholders' equity $ 21,200 2,150 4,650 $ 28,000 8,900 24,500 123,000 26,600 $211,000 The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 40 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales. Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $ 280,000 220,600 $ 59,400 8,900 $ 50,500 16,900 $ 33,600 $ 11,760 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity $ 6,000 Accounts payable $ 2 44,000 Accrued wages 62,000 Accrued taxes $112,000 Current liabilities $ 2 99,000 Notes payable Long-term debt 2 Common stock 12 Retained earnings 2 $ 211,000 Total liabilities and stockholders' equity $ 21 Total assets Using the percent-of-sales method, determine whether the company has external financing needs, or a surplus of funds. (Hint: A profit margin and payout ratio must be found from the income statement.) (Do not round intermediate calculations.) The firm