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 Dividendo $260,000 206,000 $ 54,000 8200 $ 45,300 15,700 $ 28,600 $8.580 Assets Cash Accounts receivable Inventory Current asseta Fixed assets Balance Sheet Liabilities and Stockholders' Equity $5,000 Accounts payable $ 24,600 39,000 Accrued wages 2.050 60,000 Accrued taxes 4.550 $104,000 Current liabilities $ 31,200 97,000 Notes payable 8.700 Long-term debt 23,500 Common stock 121.000 Retained earnings 16.600 $201.000 Total liabilities and stockholders' equity $201.000 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 firm Thas in surplus funds