Affordable Lawn Care, Incorporated, provides lawn$-$mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December $31.$ An adjusted trial balance dated December $31,$ current year, follows:AFFORDABLE LAWN CARE, INCORPORATEDAdjusted Trial BalanceDecember $31,$ Current Year Debits CreditsCash $ $117,050$ Accounts receivable $9,600$ Prepaid insurance $16,000$ Prepaid rent $6,000$ Supplies $2,150$ Trucks $300,000$ Accumulated depreciation: trucks $ $240,000$Mowing equipment $40,000$ Accumulated depreciation: mowing equipment $24,000$Accounts payable $3,000$Notes payable $100,000$Salaries payable $1,800$Interest payable $300$Income taxes payable $2,100$Unearned mowing revenue $1,800$Capital stock $40,000$Retained earnings $60,000$Dividends $10,000$ Mowing revenue earned $340,000$Insurance expense $4,800$ Office rent expense $72,000$ Supplies expense $10,400$ Salary expense $120,000$ Depreciation expense: trucks $60,000$ Depreciation expense: mowing equipment $8,000$ Repair and maintenance expense $6,000$ Fuel expense $3,000$ Miscellaneous expense $10,000$ Interest expense $6,000$ Income taxes expense $12,000$  $ $813,000$ $ $813,000$Required: Using the financial statements prepared in part a$,$ briefly evaluate the company's profitability and liquidity.

For the year ended December 31, Current Year, the company generated net income of Thus, net income as a percentage of sales was approximately represented a return on average stockholders' equity of approximately $ 27,800 on $ 8.2 %. Moreover, the 340,000 sales. profit %, which is a fairly strong return $ on investment. The company's balance sheet at December 31, Current Year, reports cash and accounts receivable totaling It also reports various liabilities totaling $ 109,000 Depending on when the reported in the balance sheet is due, the company may be extremely liquid. If this obligation is not due in the near future, the company has $ 126,650 in cash and accounts receivable to cover obligations of only 1,800 of the 126,650 $ 100,000 note payable 9,000 Moreover, $ of obligations, the Unearned Mowing Revenue amount, will not require $ a cash outlay. Even if this note is due shortly, the company still appears to be liquid.