The Manning Company has financial statements as shown next, which are representative of the company's historical average. The fim is expecting a 35 percent increase in sales next year, and management is concerned about the comparny'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 Incore Statenent Salmn $290,000 225,600 Expenses Earnings before interest and taxea s 64.400 Intereat ,900 Earnings before taxes S 56,500 15, 900 Taxes Earnings after taxes 40,600 Dividends 12,180 Ralance Sheet Liabilities and Stookholdera Eqaity Assets Caxh 7,000 60,000 Acerued vages Accoants payable $25,900 Accounts receivable Inventory 1,650 4.350 $ 31,900 76,000 Acerved taxea Current assets $145,000 89,000 Notes payable Curzent 1iebilities Pixed assets 7,900 Long-ters debt Connon steek 19,500 129,000 45,700 Retained earnings $234,000 Total 1iabilities and atockholders equity $234,000 Total assets 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 fim has in surplus funds.