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 $ 240,000Mowing equipment 40,000 Accumulated depreciation: mowing equipment 24,000Accounts payable 3,000Notes payable 100,000Salaries payable 1,800Interest payable 300Income taxes payable 2,100Unearned mowing revenue 1,800Capital stock 40,000Retained earnings 60,000Dividends 10,000 Mowing revenue earned 340,000Insurance 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 $ 813,000Required:a-1. Prepare an income statement for the year ended December 31, current year.a-2. Prepare a statement of retained earnings for the year ended December 31, current year.a-3. Prepare the company's balance sheet dated December 31, current year.b. Prepare the necessary year-end closing entries.c. Prepare an after-closing trial balance.d. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity.