Check my work The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 30 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 $270,000 217,400 $ 52,600 Earnings before interest and taxes Interest Earnings before taxes Taxes 8,800 $ 43,800 16,800 $ 27,000 Earnings after taxes: Dividends $ 10,800 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 6,000 Accounts payable $ 28,400 Accounts receivable Inventory 54,500 61,000 Accrued wages Accrued taxes. 2,100 4,600 $121, 500 Current liabilities Current assets Fixed assets 98,000 Notes payable. Long-term debt Common stock $ 35,100 8, 800 24,000 122,000 29,600 $219,500 Retained earnings $219,500 Total liabilities and stockholders' equity 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