The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 30 percent increase in sales next year, and management is concemned 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. $270,000 217,400 Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $ 52,600 8,800 $ 43,800 16,800 $ 27,000 $ 10,800 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 6,000 Accounts payable $ 28,400 Accounts receivable 54,500 Accrued wages 2,100 Inventory 61,080 Accrued taxes 4,600 Current assets $121,500 Current liabilities $ 35, 100 Fixed assets 98,800 Notes payable 8,800 Long-term debt 24,000 Common stock 122.00 Earnings after taxes Dividends $ 27,000 $ 10,800 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity $ 6,000 Accounts payable $ 28,400 54,500 Accrued wages 2,100 61,000 Accrued taxes 4,600 $121,589 Current liabilities $ 35, 100 98,000 Notes payable 8,800 Long-term debt 24,000 Common stock 122,000 Retained earnings 29,600 Total liabilities and stockholders $219,500 equity $219,500 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 form Lasn Accounts receivable Inventory Current assets Fixed assets 0,00 RECOUNs payauze 54,500 Accrued wages 61,000 Accrued taxes $121,589 Current liabilities 98,090 Notes payable Long-term debt Common stock Retained earnings Total liabilities and stockholders' $ 20,400 2,100 4,600 $ 35,180 8,880 24,000 122,000 29,600 Total assets $219,580 equity $219,500 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