TB MC Qu. 14-121 (Algo) Freiman Corporation's... 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) Year2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets \begin{tabular}{rr} $194 & $154 \\ 305 & 325 \\ 154 & 164 \\ 57 & 57 \\ \hline 710 & 700 \\ 870 & 870 \\ \hline$1,580 & $1,570 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Current liabilities: Mccounte payable Nccrued liabilities \$ 164 \$ 184 Notes payable, short tera Total current 1 iabilities Bonds payable Total liabilities $164107 Stockholders' equity: Common stock, \$2 par value 77 107 Additional paid-in capital \begin{tabular}{rr} 77 & 87 \\ \hline 348 & 378 \\ 331 & 341 \\ \hline 679 & 719 \\ \hline 134 & 134 \\ 285 & 285 \\ 107 & 179 \end{tabular} Stockholders' equity: Common stock, \$2 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities a stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (al1 on account) cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (308) Net income The current ratio at the end of Year 2 is closest to: Multiple Choice 0.62 2.04 0.61 1.21