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 soles 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 $220, eee Expenses 171,200 Earnings before interest and taxes $ 48,800 Interest 7,200 Earnings before taxes $ 41,600 Taxes 15,200 Earnings after taxes $ 26,400 Dividends $9,240 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and stockholders' Equity $ 8,000 Accounts payable 61,000 Accrued wages 85,000 Accrued taxes $ 154,000 Current liabilities 82.eee Notes payable Long-term debt Connon stock Retained earnings $ 236, eee Total liabilities and stockholders equity $ 29,000 2,600 3,500 $ 35,200 7,200 16,000 122.000 55,600 $ 236,080 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