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 $ 178 $ 138 Accounts receivable, net 265 285 Inventory 138 148 Prepaid expenses 49 49 Total current assets 630 620 Plant and equipment, net 790 790 Total assets $1,420 $1,410 $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings Total stockholders' equity 148 $ 99 69 316 307 623 168 99 79 346 317 663 118 245 434 797 118 245 384 747 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1,670 Cost of goods sold 960 Gross margin 710 Selling and administrative expenses 404 Net operating income 306 Interest expense 53 Net income before taxes 253 Income taxes (30%) 76 Net income $ 177 The working capital at the end of Year 2 is: Multiple Choice $314 thousand $788 thousand Multiple Choice O $314 thousand O $788 thousand $790 thousand O $630 thousand