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 $230,000 175,388 Earnings before interest and taxes $ 54,700 Interest Earnings before taxes Taxes Earnings after taxes- Dividends 8,408 $:46,300 16,400 $ 29,900 $ 11,960 Balance Sheet Assets Liabilities and Stockholders Equity Cash $ 9,500 Accounts payable $ 26,900 Accounts receivable Inventory Current assets Fixed assets 94,000 47,000 Accrued wages 70,000 Accrued taxes $126,500 Notes payable 1,900 3,400 Current liabilities $ 32,200 8,400 Long-term debt Common stock Total assets 22,000 118,0001 Retained earnings 19,900 3220,500 Total 11abilities and stockholders equity $220, 500 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 fi