TB MC Qu. 14-145 Frelman Corporation's... Freiman Corporation's most recent balance sheet and income statement appear below: points Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 eBook $ 170 $ 245 130 45 130 265 142 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets References 45 590 750 750 $1,340 $1,330 $ 140 $ 160 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 110 225 410 745 695 $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 Net income before taxes Income taxes (30%) Net income 201 The acid-test (quick) ratio at the end of Year 2 is closest to: Multiple Choice o O 1.98 o 138 o o 01.01