a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be Indicated with parentheses or a minus slgn.) S 257.000 CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 20X2 Cash flows from operating activities: Net income Adjustments to determine cashflow from operating activities: Add back depreciation S 317.000 Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued expenses Total adjustments Net cash flows from operating activities Cash flows from investing activities: S 317.000 574,000 S S 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities S 0 b. Compute the book value per common share for both 20X1 and 20x2 for the Crosby Corporation (Round your answers to 2 decimals places.) Book value 20X1 20X2 c. If the market value of a share of common stock is 3.4 times book value for 20x2, what is the firm's P/E ratio for 20x2? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) PIE ratio times Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 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 $ $ 4,210,we 2,629,90 1,599,00 703,80 317,00 570,000 82,00 488,990 231,080 257,000 10,000 247,00 150,000 1.65 Statement of Retained Earnings For the Year Ended December 31, 20x2 Retained earnings, balance, January 1, 20x2 Add: Earnings available to common stockholders, 28x2 Deduct: Cash dividends declared and paid in 20x2 Retained earnings, balance, December 31, 20x2 $978,900 247,00 235,000 $ 999,900 Year-End 20x2 $ 183,400 570, eee 733, eee 34,400 $1,449,800 81,700 $ 2,830,we 1,417,000 1,413,000 $2,935,5ee Comparative Balance Sheets For zexi and 20x2 Year-End 20x1 Assets Current assets: Cash $ 110,000 Accounts receivable (net) 556,080 Inventory 683,80 Prepaid expenses 69,500 Total current assets $1,418,500 Investments (long-term securities) 95,680 Gross plant and equipment $ 2,290, eee Less: Accumulated depreciation 1,100,eee Net plant and equipment 1,190,00 Total assets $2,784,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 386,000 Notes payable 500,000 Accrued expenses 77,280 Total current liabilities $ 963,200 Long-term liabilities: Bonds payable, 20x2 172,000 Total liabilities $1,135,280 Stockholders' equity: Preferred stock, $100 par value s 99,00 Common stock, $1 par value 150,00 Capital paid in excess of par 350,000 Retained earnings 978,989 Total stockholders' equity $1,568,990 Total liabilities and stockholders' equity $2,784,100 $ 582,000 500,000 51,60e $1,133,600 221, eee $1,354,600 90,00 150,00 350,000 999, 900 $1,580,900 $2,935,500 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be Indicated with parentheses or a minus slgn.)
