The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 40 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 Earnings after taxes $ 270,000 203,400 $ 66,600 7,700 $ 58,900 15,700 $ 43,200 Dividends $ 17,280 Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets Balance Sheet (in $ millions) Liabilities and Stockholders' Equity $ 29,000 $ 7,500 Accounts payable 71,000 70,000 Accrued wages Accrued taxes $ 148,500 1 Current liabilities 87,000 Notes payable. Long-term debt Common stock Retained earnings $ 235,500 Total liabilities and stockholders' equity 1,850 4,250 $ 35,100 7,700 18,500 127,000 47,200 $ 235,500 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. The firm needs in external funds.