The Manning Company has financial statements as shown next, which are representative of the companys historical average. The firm is expecting a 40 percent increase in sales next year, and management is concerned about the companys 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 $ 300,000 Expenses 246,800 Earnings before interest and taxes $ 53,200 Interest 9,100 Earnings before taxes $ 44,100 Taxes 17,100 Earnings after taxes $ 27,000 Dividends $ 5,400 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 9,000 Accounts payable $ 29,000 Accounts receivable 56,000 Accrued wages 2,250 Inventory 70,000 Accrued taxes 4,750 Current assets $ 135,000 Current liabilities $ 36,000 Fixed assets 86,000 Notes payable 9,100 Long-term debt 25,500 Common stock 125,000 Retained earnings 25,400 Total assets $ 221,000 Total liabilities and stockholders' equity $ 221,000 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.)