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 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 Earnings after taxes Dividends $230,000 168,500 $ 61,500 9,500 $ 52,000 17,500 $ 34,500 $ 13,800 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 6,500 Accounts payable $ 22,800. Accounts receivable. 42,000 Accrued wages Inventory 55,000 Accrued taxes 2,450 4,650 Current assets $103,500 Current liabilities. $ 29,900 Fixed assets 90,000 Notes payable 9,500 Long-term debt 27,500 Common stock 110,000 Retained earnings 16,600 Total assets $193,500 Total liabilities and stockholders' equity $193,500 Using the percent-of-sales method, determine whether the company ha 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