The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 25 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 $300,000 231,000 $ 69,000 8. eee $ 61,000 16,000 $ 45,000 $ 13,500 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity $ 5,000 Accounts payable 81,009 Accrued wages 79,000 Accrued taxes $ 165,000 Current liabilities 90,000 Notes payable Long-term debt Common stock Retained earnings $ 255,000 Total liabilities and stockholders' equity $ 29,900 1,700 4,400 $ 36,000 8,eee 20, eee 130,000 61,000 $ 255,000 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 The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 25 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 $300,000 231,000 $ 69,000 8,000 $ 61,000 16,000 $ 45,000 $ 13,500 Assets Cash Accounts receivable Inventory Current assets Fixed assets $ 5,000 81,000 79,000 $ 165,000 90,000 Balance Sheet Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $ 29,900 1,700 4,400 $ 36,000 8,000 20,000 130,000 61,000 $ 255,000 Total assets $ 255,000 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.) The firm