The Manning Company has financial statements as shown next, which are representative of the company's historical average The firm is expecting a 35 percent increase in sales next year, and management is concened 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 Eanings before interest and taxes Interest Earnings before taxes Taxes S230,000 168,500 $ 61,500 9,500 Earnings after taxes Dividends 5 34,500 S 13,800 Balance Sheet Assets Liabilities and Stockholders' Equity S 22,800 2,450 4,650 S 29,900 9,500 27,500 110,000 16,600 S 193,500 Cash Accounts receivable Inventory S 6,500 Accounts payable 42,000 Accrued wages 55.000 Accrued taxes S 103.500 Current liabilities Current assets Fixed assets 90,000 Notes payable Long-term debt Common stock Retained earnings Total assets S 193.500Total liabilities and stockholders' equity 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 in surplus funds. as