Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets 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 Year 2 Year 1 $ 172 250 $ 132 270 132 142 46 46 600 590 760 760 $ 1,360 $ 1,350 $ 142 $ 162 96 96 66 76 304 334 298 308 602 642 112 112 230 230 416 366 758 708 $ 1,360 $ 1,350 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income The working capital at the end of Year 2 is: $ 1,550 900 650 389 261 47 214 64 $ 150 Multiple Choice $296 thousand $752 thousand $760 thousand $600 thousand