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 3,570,000 2,200,000 1,378,888 687,000 309, eee 374,000 80,2ee 293,800 170,000 123,800 10,000 113,800 15e,eee 8.76 Statement of Retained Earnings For the Year Ended December 31, 20x2 Retained earnings, balance, January 1, 28x2 Add: Earnings available to common stockholders, 28x2 Deduct: Cash dividends declared and paid in 20x2 Retained earnings, balance, December 31, 20x2 $ 316,000 113,800 199,000 $ 230,800 Comparative Balance Sheets For 20x1 and 20X2 Year-End 20x1 Year End 28x2 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets $ 127,000 525,000 601,000 61,200 $1,314,200 $ 102,200 591,000 654,000 31,200 $1,378,400 Year-End 28X2 $ 102,200 591,899 654,000 31,200 $1,378,400 88,6ee $ 2,550,000 1,829. eee Comparative Balance Sheets For 20X1 and 20x2 Year-End 20x1 Assets Current assets: Cash $ 127,eee Accounts receivable (net) 525,000 Inventory 601,000 Prepaid expenses 61,200 Total current assets $1,314,200 Investments (long-term securities) 92,900 Gross plant and equipment $ 2, 120,000 Less: Accumulated depreciation 1,520,000 Net plant and equipment 600,000 Total assets $2,8e7, 100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 300,000 Notes payable 534, eee Accrued expenses 75,1ee Total current liabilities $909, 100 Long-term liabilities: Bonds payable, 20x2 192,000 Total liabilities $1,101,100 Stockholders' equity: Preferred stock, $100 par value $ 90,000 Common stock, $1 par value 150,000 Capital paid in excess of par 350,000 Retained earnings 316,000 Total stockholders' equity $906,000 Total Habilities and stockholders' equity $2,007,100 721,000 52,188,000 $ 576,000 534.ee 55,200 $1,165,200 202,000 $1,367,200 $ 90,000 150,000 350,000 23e, Bee $ 820,800 $2,188,000 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.) CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 20X2 Cash flows from operating activities Adjustments to determine cashflow from operating activities: Total adjustments Net cash flows from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activitie