The Manning Company has financial statements as shown next, which are representative of the companys historical average. The firm is expecting a 35 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 $ 250,000 Expenses 192,000 Earnings before interest and taxes $ 58,000 Interest 7,500 Earnings before taxes $ 50,500 Taxes 15,500 Earnings after taxes $ 35,000 Dividends $ 7,000 Balance Sheet Assets Liabilities and Stockholders' Equity Cash $ 8,500 Accounts payable $ 26,400 Accounts receivable 63,000 Accrued wages 2,350 Inventory 91,000 Accrued taxes 3,750 Current assets $ 162,500 Current liabilities $ 32,500 Fixed assets 85,000 Notes payable 7,500 Long-term debt 17,500 Common stock 125,000 Retained earnings 65,000 Total assets $ 247,500 Total liabilities and stockholders' equity $ 247,500 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.)