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 Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends Assets Cash Accounts receivable Inventory Current assets Fixed assets $240,000 181,200 $ 58,800 7,400 $144,000 84,900 $ 51,400 15,400 $ 36,000 $ 12,600 Balance Sheet Liabilities and Stockholders' Equity $ 6,000 Accounts payable 57,000 Accrued wages 81,000 Accrued taxes Current liabilities Notes payable. Long-term debt Common stock $ 23,300 1,800 3,700 $ 28,800 7,400 17,000 124,000 Earnings before taxes Taxes Earnings after taxes Dividends Cash Accounts receivable Inventory Current assets Fixed assets Total assets Assets The firm $ 6,000 57,000 81,000 $ 144,000 84,000 needs $ 51,400 15,400 $ 36,000 $ 12,600 Balance Sheet Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Long-term debt Common stock Retained earnings $ 228,000 Total liabilities and stockholders' equity $ 23,300 1,800 3,700 $ 28,800 7,400 17,000 124,000 50,800 $ 228,000 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.) S29.340 in external funds MSSK my work