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	$194	$154
Accounts receivable	305	325
Inventory	154	164
Prepaid expenses	57	57
Total current assets	710	700
Plant and equipment, net	870	870
Total assets	$1,580	$1,570
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$164	$184
Accrued liabilities	107	107
Notes payable, short term	77	87
Total current liabilities	348	378
Bonds payable	331	341
Total liabilities	679	719
Stockholders equity:
Common stock, $2 par value	134	134
Additional paid-in capital--common stock	285	285
Retained earnings	482	432
Total stockholders equity	901	851
Total liabilities & stockholders equity	$1,580	$1,570

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$1,990
Cost of goods sold	1,120
Gross margin	870
Selling and administrative expenses	444
Net operating income	426
Interest expense	69
Net income before taxes	357
Income taxes (30%)	107
Net income	$250

The working capital at the end of Year 2 is:

$362 thousand

$884 thousand

$870 thousand

$710 thousand