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	$	196		$	156
Accounts receivable, net		310			330
Inventory		156			166
Prepaid expenses		58			58
Total current assets		720			710
Plant and equipment, net		880			880
Total assets	$	1,600		$	1,590
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	166		$	186
Accrued liabilities		108			108
Notes payable, short term		78			88
Total current liabilities		352			382
Bonds payable		334			344
Total liabilities		686			726
Stockholders' equity:
Common stock, $2 par value		136			136
Additional paid-in capital		290			290
Retained earnings		488			438
Total stockholders' equity		914			864
Total liabilities & stockholders' equity	$	1,600		$	1,590

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$	2,030
Cost of goods sold		1,140
Gross margin		890
Selling and administrative expenses		449
Net operating income		441
Interest expense		71
Net income before taxes		370
Income taxes (30%)		111
Net income	$	259

The working capital at the end of Year 2 is:

Multiple Choice

• $368 thousand

• $896 thousand

• $880 thousand

• $720 thousand