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 concermed about the company's need for external fur The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilizatio the existing store. Among liabilities, only current liabilities vary directly with sales Income Statement Sales Expenses Earnings before interest and taxes Interest Eamings before taxes Taxes $ 230,000 168,500 61,500. 9,500 $ 52,000 17,500 $ 34,500 13,800 Earnings after taxes Dividends Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory $ 6,500 Accounts payable $ 22,800 2,450 42,000 03,500 Current liabilities 90,000 Notes payable Accrued wages Accrued taxes Current assets Fixed assets Long-term debt Common stock Retained earnings Total liabilities and stockholders 29,900 9,500 27.500 110,000 16,600 Total assets 193,500 equity $ 193,500 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