Extracted text: 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. Income Statement Sales $220,000 158,000 $ 62,000 9,400 $ 52,600 17,400 $ 35,200 Expenses Earnings before interest and taxes Interest Earnings before taxes Тахes Earnings after taxes Dividends $ 8,800 Balance Sheet Assets Liabilities and Stockholders' Equity $ 5,000 61,000 Accrued wages 77,000 Accrued taxes Cash $ Accounts payable $ 25,700 Accounts receivable 2,400 4,900 $ 33,000 9,400 Inventory $143,000 89,000 Notes payable Current assets Current liabilities Fixed assets Long-term debt Common stock 27,000 128,000 Retained earnings 34,600 Total assets $232,000 Total liabilities and stockholders' equity $232,000 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