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 $ 170 $ 130 Accounts receivable, net 245 265 Inventory 130 140 Prepaid expenses 45 45 Total current assets 590 580 Plant and equipment, net 750 750 Total assets $ 1,340 $ 1,330 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 140 $ 160 Accrued liabilities 95 95 Notes payable, short term 65 75 Total current liabilities 300 330 Bonds payable 295 305 Total liabilities 595 635 Stockholders' equity: Common stock, $2 par value 110 110 Additional paid-in capital 225 225 Retained earnings 410 360 Total stockholders' equity 745 695 Total liabilities & stockholders' equity $ 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 45 Net income before taxes 201 Income taxes (30%) 60 Net income $ 141 The working capital at the end of Year 2 is:

Working capital for year 2 = $290 Calculations Working capital = Current assets - Current liabilities Current assets (A) Current liabilities (B) Working Capital (C=A-B) $ 590.00 $ 300.00 $ 290.00 .

Freiman Corporation's most recent balance sheet a…

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Working capital for year 2 = $290

Calculations

Working capital = Current assets - Current liabilities

Current assets (A)	Current liabilities (B)	Working Capital (C=A-B)
$ 590.00	$ 300.00	$ 290.00

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Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2		Year 1
Assets
Current assets:
Cash	$	170	$	130
Accounts receivable, net		245		265
Inventory		130		140
Prepaid expenses		45		45
Total current assets		590		580
Plant and equipment, net		750		750
Total assets	$	1,340	$	1,330

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	140	$	160
Accrued liabilities		95		95
Notes payable, short term		65		75
Total current liabilities		300		330
Bonds payable		295		305
Total liabilities		595		635
Stockholders' equity:
Common stock, $2 par value		110		110
Additional paid-in capital		225		225
Retained earnings		410		360
Total stockholders' equity		745		695
Total liabilities & stockholders' equity	$	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		45
Net income before taxes		201
Income taxes (30%)		60
Net income	$	141

Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year...

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