EXERCISE 5.2 Financial Statement Preparation LO5-1, LO5-2, LO5-6 Green Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The following is the combanv's vearend adiusted trial balance dated December 31 . current vear. Dame 975 a. Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company's balance sheet dated December 31, current year. b. Does the company appear to be liquid? Defend your answer. c. Has the company been profitable in the past? Explain