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"he Manning Company has nancial statements as shown next, which are representative of the company's historical average. The rm s expecting a 35 percent increase in sales next year, and management is concerned about the company's need for extemal funds. "he increase in sales is expected to be carried out without anyr expansion of xed assets, but rather through more efcient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales. income-Statement Sales $260,000 Expenses 206,000 Earnings before interest and taxes S 54,000 Interest 8,700 Earnings before taxes $ 45,300 Taxes 16,700 Earnings after taxes 5 28:500 Dividends S 8,580 Balance-Sheet Assets Liabilities and Stockholders' Equity Cash 5 5,000 Accounts payable 5 24,600 Accounts receivable 39,000 Accrued wages 2,050 Inventory 60,000 Accrued taxes 4,550 Current assets $104,000 Current liabilities $ 31,200 Fixed assets 97,000 Notes payable 8,700 Longterm debt 23,500 Common stock 121,000 Retained earnings 16,600 Total assets $201:000 Total liabilities and stockholders' equity 5201:000 Using the percentofsales method, determine whether the company has external nancing needs, or a surplus of funds. (Hint: A prot margin and payout ratio must be found from the income statement.) {Do not round intermediate calculations.) Using the percent-ofsales method, determine whether the company has external nancing needs. or a surplus of funds. (Hint: A prot margin and payout ratio must be found from the income statement.) {Do not round intermediate calculations.)