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. Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes. Dividends O Cash Accounts receivable Inventory Current assets Fixed assets Total assets Assets The firm $ 290,000 225,600 $ 64,400 7,900 needs $ 56,500 15,900 $ 40,600 $ 12,180 Balance Sheet $ 7,000 Accounts payable 60,000 78,000 $ 145,000 89,000 Accrued wages Accrued taxes Liabilities and Stockholders' Equity Current liabilities Notes payable Long-term debt Common stock Retained earnings $ 234,000 Total liabilities and stockholders' equity 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.) Ein external funds. $ 25,900 1,650 4,350 $ 31,900 7,900 19,500 129,000 45,700 $ 234,000