The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 30 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. $270.000 217 4ee S 52.600 Income Statement Sales Expenses Earnings before Interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $ 43.800 16.800 $ 27,eee $ 10,00 Assets Cash Accounts receivable Inventory Current assets Fixed assets Balance Sheet Liabilities and Stockholders' Equity $ 6.000 Accounts payable 54,500 Accrued wages 61.00 Accrued taxes S 121.588 Current liabilities 98.cee Notes payable Long-term debt Connon stock Retained earnings $ 219,580 Total liabilities and stockholders' equity $ 28,400 2,100 4.600 $ 35.100 8.800 122.000 29,6ee $ 219.See 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

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