Need answers exercise 5.3

B. Does the company appear to be liquid? Defend your answer c. Has the company been profitable in the past? Explain. Wilderness Guide Services, Inc., performs adjusting entries every month, but closes itsa The company's year-end adjusted trial balance dated December 31, 2011, follows WILDERNESS GUIDE SERVICES, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 2011 Cash ..$ 12,200 Unexpired insurance policies... Equipment 31,000 7,900 2,400 70,000 60,000 18,000 9,500 25,000 15,000 Capital stock Dividends . Guide revenue earned... Salary expense .. Camping supply expense. 1,000 102,000 87,500 1,200 9,600 5,000 1.700 $229,500 $229,500 a. Prepare an income statement and statement of retained earnings for the year ended December 31, 2011. Also prepare the company's balance sheet dated December 31, 2011 (Hint: Unprofitable companies have no income taxes expense.) b. Does the company appear to be liquid? Defend your answer c. Has the company been profitable in the past? Explain