The Manning Company has financial statements as shown next, which are representative of the company's historical average The firm is expecting a 25 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 $300,000 231,000 69,000 8,000 $ 61,000 16,000 Earnings after taxes Dividends $45,000 $13,500 Balance Sheet Assets Liabilities and Stockholders' Equity $ 29,900 1,700 4,400 $ 36,000 8,000 20,000 130,000 61,000 255,000 Cash Accounts receivable 5,000 Accounts payable 81,000 Accrued wages 79,000 Accrued taxes S 165,000 Current liabilities Notes payable Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Current assets Fixed assets 90,000 S 255,000 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