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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 30 percent increase in sales next year, and management is concerned about the company's need for external funds. "he increase in sales is expected to be carried out without any 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 $290,000 Expenses 260,800 Earnings before interest and taxes $ 69,200 Interest 9,000 Earnings before taxes 5 60,200 Taxes 1T,000 Earnings after taxes $ 23:200 Dividends $ 8,120 ' alance Sheet Assets Liabilities and Stockholders' Equity Cash $ 8,000 Accounts payable $ 25,000 Accounts receivable 65,000 Accrued wages 2,200 Inventory 63.000 Accrued taxes 4:700 Current assets $116,000 Current liabilities 5 31,900 Fixed assets 85,000 Notes payable 9,000 Longterm debt 25,000 Common stock 126,000 Retained earnings 11,100 Total assets 5201.000 Total liabilities and stockholders' equity 5201.000 Using the percent-ofsales method, determine whether the company has extemal 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.)