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	$170	$130
Accounts receivable	245	265
Inventory	130	140
Prepaid expenses	45	45
Total current assets	590	580
Plant and equipment, net	750	750
Total assets	$1,340	$1,330
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$140	$160
Accrued liabilities	95	95
Notes payable, short term	65	75
Total current liabilities	300	330
Bonds payable	295	305
Total liabilities	595	635
Stockholders equity:
Common stock, $2 par value	110	110
Additional paid-in capital--common stock	225	225
Retained earnings	410	360
Total stockholders equity	745	695
Total liabilities & stockholders equity	$1,340	$1,330

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$1,510
Cost of goods sold	880
Gross margin	630
Selling and administrative expenses	384
Net operating income	246
Interest expense	45
Net income before taxes	201
Income taxes (30%)	60
Net income	$141

The working capital at the end of Year 2 is:

$740 thousand

$290 thousand

$590 thousand

$750 thousand