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.

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.$)$

Note: Do not round intermediate calculations. Input your answer as positive a value.