Freiman corporation's most recent balance sheet and income statement appear below: balance sheetdecember 31, year 2 and year 1(in thousands of dollars)year 2 year 1assets current assets: cash $182 $142 accounts receivable 275 295 inventory 142 152 prepaid expenses 51 51 total current assets 650 640 plant and equipment, net 810 810 total assets $1,460 $1,450 liabilities and stockholders’ equity current liabilities: accounts payable $152 $172 accrued liabilities 101 101 notes payable, short term 71 81 total current liabilities 324 354 bonds payable 313 323 total liabilities 637 677 stockholders’ equity: common stock, $2 par value 122 122 additional paid-in capital--common stock 255 255 retained earnings 446 396 total stockholders’ equity 823 773 total liabilities & stockholders’ equity $1,460 $1,450 income statementfor the year ended december 31, year 2(in thousands of dollars) sales (all on account) $1,750 cost of goods sold 1,000 gross margin 750 selling and administrative expense 414 net operating income 336 interest expense 57 net income before taxes 279 income taxes (30%) 84 net income $195the acid-test ratio at the end of year 2 is closest to: 1.411.612.041.07