Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$ 198	$ 158
Accounts receivable, net	315	335
Inventory	158	168
Prepaid expenses	59	59
Total current assets	730	720
Plant and equipment, net	890	890
Total assets	$ 1,620	$ 1,610
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 168	$ 188
Accrued liabilities	109	109
Notes payable, short term	79	89
Total current liabilities	356	386
Bonds payable	337	347
Total liabilities	693	733
Stockholders' equity:
Common stock, $2 par value	138	138
Additional paid-in capital	295	295
Retained earnings	494	444
Total stockholders' equity	927	877
Total liabilities & stockholders' equity	$ 1,620	$ 1,610

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 2,070
Cost of goods sold	1,160
Gross margin	910
Selling and administrative expenses	454
Net operating income	456
Interest expense	73
Net income before taxes	383
Income taxes (30%)	115
Net income	$ 268

The working capital at the end of Year 2 is: