The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 40 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 $210,000 Expenses 151,900 Earnings before interest and taxes $ 58,100 Interest 9,300 Earnings before taxes $ 48,800 Taxes 17,300 Earnings after taxes $ 31,500 Dividends $ 9,450 Sales Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity $ 4,000 Accounts payable $ 22,200 56,000 Acerued wages 2.350 66,000 Accrued taxes 4,850 $126,000 Current liabilities $ 29,400 88,000 Notes payable 9.300 Long-tern debt 26,500 Common stock 127,000 Retained earnings 21,800 $214,000 Total liabilities and stockholders' equity $214,000 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