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 188 $ 148 Accounts receivable, net 290 310 Inventory 148 158 Prepaid expenses 54 54 Total current assets 680 670 Plant and equipment, net 840 840 Total assets $1,520 $1,510 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 Total liabilities & stockholders' equity $ 158 $ 178 104 104 74 84 336 366 322 332 658 698 128 128 270 270 464 414 862 812 $1,520 $1,510 104 74 336 322 658 104 84 366 332 698 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 Total liabilities & stockholders' equity 128 128 270 270 464 414 862 812 $1,520 $1,510 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1,870 Cost of goods sold 1,060 Gross margin 810 Selling and administrative expenses 429 Net operating income 381 Interest expense 63 Net income before taxes 318 Income taxes (30%) 95 Net income $ 223 The working capital at the end of Year 2 is: Saved Help Save & Exit 11 12 13 14 Net operating income Interest expense Net income before taxes Income taxes (30%) Net income 381 63 318 95 $ 223 The working capital at the end of Year 2 is: Multiple Choice $344 thousand $848 thousand $840 thousand $680 thousand