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 Taxes $ 260,000 206,000 S 54,000 8,700 S 45,300 16,700 S 28,600 Earnings after taxes Dividends S 8,580 Balance Sheet Assets Liabilities and Stockholders' Equity S 24,600 2,050 4,550 S 31,200 8,700 23,500 121,000 Cash Accounts receivable $ 5,000 Accounts payable 39,000 Accrued wages 60,000 Accrued taxes $104,000 Current liabilities 97000 Notes payable Current assets Fixed assets Long-term debt Common stock Retained earmings Total assets 201,000 Total liabilities and stockholders' equity S 201,000 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