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.)

Note: Do not round intermediate calculations. Input your answer as positive a value.