Green Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The following is the companys year-end adjusted trial balance dated December 31, current year.

GREEN LAWNS, INC.
Adjusted Trial Balance
December 31, Current Year
Cash	$	218,640
Accounts receivable		10,800
Supplies		720
Equipment		28,800
Accumulated depreciation: equipment					$	12,000
Accounts payable						3,600
Income taxes payable						8,400
Capital stock						60,000
Retained earnings						108,000
Dividends		4,800
Lawn care revenue earned						230,400
Salary expense		124,800
Supply expense		2,880
Advertising expense		720
Depreciation expense: equipment		2,400
Income taxes expense		27,840
	$	422,400			$	422,400

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 companys balance sheet dated December 31, current year.

b. Does the company appear to be liquid?

c. Has the company been profitable in the past?