LO5-1, LO5-2, LO5-6 EXERCISE 5.3 Financial Statement Preparation Wilderness Guide Services, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company's year-end adjusted trial balance dated December 31, 2015, follows: WILDERNESS GUIDE SERVICES, INC. ADJUSTED TRIAL BALANCE Cash... Accounts receivable.. Camping supplies.. Unexpired insurance policies.. Equipment Accumulated depreciation: equipment Notes payable (due 4/1/16) Accounts payable.. Capital stock Retained earnings Dividends. Guide revenue earned Salary expense.. DECEMBER 31, 2015 $ 12,200 31,000 7,900 2,400 70,000 $ 60,000 18,000 9,500 25,000 15,000 1,000 102,000 87,500 1,200 9,600 5,000 1,700 $229,500 $229,500 Camping supply expense. Insurance expense.. Depreciation expense: equipment. Interest expense. a. Prepare an income statement and statement of retained earnings for the year ended December 31, 2015. Also prepare the company's balance sheet dated December 31, 2015. (Hint: Unprofit- able 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.