Analysis of the transactions of the Moonlight Drive-In Theater for June 2012 disclosed the following:

Ticket revenue $180,000

Equipment rent expense 50,000

Film rent expense 53,400

Concession Revenue 29,600

Advertising expense 18,600

Salaries expense 60,000

Utilities expense 14,100

Cash dividends declared and paid 12,000

Balance sheet amounts at June 30 include the following:

Cash $140,000

Land 148,000

Account Payable 87,600

Capital Stock 114,000

Retained earnings as of June 1, 2012 84,900

a. Prepare an income statement for June 2012.

b. Prepare a statement of retained earnings for June 2012.

c. Prepare a balance sheet as of June 30, 2012.

d. How solvent does this company appear to be?