e statement appear below December 31 , Year 2 and Year ! Year 2 current assets Cash 194 $ 154 Accounts receivable, not 325 inventory 164 Prepaid expenses 57 Ipual current assets 700 Plant and equipment, net 370 Total assets ,570 iabilitie ities and Stockholders| Eauity Current liabilities Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities on 19 Stockholders equity: common stock. par value 14 Additional paid in capital stained earnings stockholders equi Total liabilities 2 "s & stockholders" Income Statement For the Year Ended December Year 2 thousands of dollars) Sales (all on account ) $ 1,990 How 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 (30x) 107 Net income $ 250 The working capital at the end of Year 2 is