Freiman Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2			Year 1
Assets
Current assets:
Cash	$	166		$	126
Accounts receivable, net		235			255
Inventory		126			136
Prepaid expenses		43			43
Total current assets		570			560
Plant and equipment, net		730			730
Total assets	$	1,300		$	1,290
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	136		$	156
Accrued liabilities		93			93
Notes payable, short term		63			73
Total current liabilities		292			322
Bonds payable		289			299
Total liabilities		581			621
Stockholders' equity:
Common stock, $2 par value		106			106
Additional paid-in capital		215			215
Retained earnings		398			348
Total stockholders' equity		719			669
Total liabilities & stockholders' equity	$	1,300		$	1,290

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$	1,430
Cost of goods sold		840
Gross margin		590
Selling and administrative expenses		374
Net operating income		216
Interest expense		41
Net income before taxes		175
Income taxes (30%)		53
Net income	$	122

The working capital at the end of Year 2 is:

a. 730,000

b. 716,000

c. 570,000

d. 278,000