Green Lawns, Inc. Income Statement Year Ending December 31, 2015
Revenue:
Lawn care revenue earned		$192,000
Expenses:
Salary Expense	$104,000
Supply Expense	$2,400
Advertising Expense	$600
Depreciation Expense: Equipment	$2,000	$109,000
Income before income taxes		$83,000
Income Taxes Expense		$23,200
Net Income		$59,800

Green Lawns, Inc. Statement of Retained Earnings Year Ending December 31, 2015
Retained Earnings, January 1, 2015	$90,000
Add: Net income earned in 2015	$59,800
Subtotal	$149,800
Less: Dividends declared in 2015	$4,000
Retained earnings, December 31, 2015	$145,800

Green Lawns, Inc. Balance Sheet Year Ending December 31, 2015
Assets
Cash		$182,200
Accounts Receivable		9,000
Supplies		600
Equipment	$18,000
Less: Accumulated Depreciation: Equipment	10,000	8,000
Total assets		$199,800
Liabilities & Stockholders' Equity
Liabilities
Income taxes payable		$7,000
Accounts Payable		3,000
Total Liabilities:		$10,000
Stockholders' Equity
Capital Stock		$50,000
Retained earnings		90,000
Total stockholders' equity		$140,000
Total liabilities and stockholders' equity		$150,000

Does this company appear to be liquid? Explain.

Has the company been profitable in the past? Explain.

Answer rating: 100% (QA)

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