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 Dividends $240,000 179,000 $ 61,000 8,500 $ 52,500 16,500 $ 36,000 $ 16, 200 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity 3,000 Accounts payable $ 29,600 52,000 Accrued wages 1,950 65,000 Accrued taxes 4,450 $120,000 Current liabilities 95,000 Notes payable 8,500 Long-term debt Common stock Retained earnings 29,000 $215,000 Total liabilities and stockholders' equity $215,000 $ 36,000 22,500 119,000 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 firm