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. Sales Expenses Income Statement Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $270,000 203,400 $ 66,600 7,700 $ 58,900 15,700 $ 43,200 $ 17,280 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 7,500 Accounts payable $ 29,000 Accounts receivable Inventory Current assets Fixed assets 71,000 70,000 $148,500 87,000 Accrued wages Accrued taxes 1,850 4,250 Current liabilities $ 35,100 Notes payable 7,700 Long-term debt 18,500 Common stock 127,000 Retained earnings 47,200 Total assets $235,500 Total liabilities and stockholders equity $235,500 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 firm