Question
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
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 $ 164 $ 124 Accounts receivable, net 230 250 Inventory 124 134 Prepaid expenses 42 42 Total current assets 560 550 Plant and equipment, net 720 720 Total assets $ 1,280 $ 1,270 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 134 $ 154 Accrued liabilities 92 92 Notes payable, short term 62 72 Total current liabilities 288 318 Bonds payable 286 296 Total liabilities 574 614 Stockholders' equity: Common stock, $2 par value 104 104 Additional paid-in capital 210 210 Retained earnings 392 342 Total stockholders' equity 706 656 Total liabilities & stockholders' equity $ 1,280 $ 1,270 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,390 Cost of goods sold 820 Gross margin 570 Selling and administrative expenses 369 Net operating income 201 Interest expense 39 Net income before taxes 162 Income taxes (30%) 49 Net income $ 113 The working capital at the end of Year 2 is:
Multiple Choice $272 thousand $704 thousand $720 thousand $560 thousand
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