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. $220,000 171,200 $ 48,800 Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends 8,300 $ 40,500 16,300 $ 24, 200 $ 7,260 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 8,000 Accounts payable $ 23,400 Accounts 33,000 Accrued wages receivable 1,850 Inventory 69,000 Accrued taxes 3,350 Current assets $110,000 Current liabilities $ 28,600 Fixed assets 93,000 Notes payable 8,300 Long-term debt 21,500 Common stock 117,000 Retained earnings 27,600 Total liabilities and Total assets $203,000 stockholders' equity $ 203,000 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