28. (LO2-4) Refer to the following financial statements for Crosby Corporation: a. Prepare a statement of cash flows for the Crosby Corporation using the general procedures indicated in Table 2-10 b. Describe the general relationship between net income and net cash flows from operating activities for the firm. c. Has the buildup in plant and equipment been financed in a satisfactory manner? Briefly discuss. d. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. e. If the market value of a share of common stock is 3.3 times book value for 20XI, what is the firm's P/E ratio for 20X2? CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Page 53 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation expense Operating income Interest expense Earnings before taxes Taxes Earnings after taxes Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share $2,200,000 1,300,000 $ 900,000 420,000 150,000 $ 330,000 90,000 $ 240,000 80,000 $ 160,000 10,000 $ 150,000 120,000 $ 1.25