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 $230,000 Expenses 177,500 Earnings before $ 52,500 interest and taxes Interest 7,300 Earnings before $ 45,200 taxes Taxes 15,300 Earnings after taxes $ 29,900 Dividends $ 11,960 Balance Sheet Liabilities and Stockholders' Assets Equity Cash $ 6,500 Accounts payable $ 28,200 Accounts 50,000 Accrued wages 2,650 receivable Inventory 70,000 Accrued taxes 3,650 Current $126,500 current liabilities $ 34,500 assets Fixed assets 83,000 Notes payable 7,300 Long-term debt 16,500 Common stock 123,000 Retained earnings 28, 200 Total liabilities and Total assets $20 stockholders' equity $209,500 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