H Saved rm Chapter 1-6 B Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $4,240,000 Cost of goods sold 2,810,000 Gross profit $1,430,000 38:39 Selling and administrative expense 738,000 Depreciation expense 236,000 Operating income $ 456,000 Interest expense 88,000 Earnings before taxes $ 368,000 Taxes 173,000 Earnings after taxes $ 195,000 Preferred stock dividends 10,000 Earnings available to common stockholders $ 185,000 Shares outstanding Earnings per share 150,000 1.23 Statement of Retained Earnings For the Year Ended December 31, 20X2 Retained earnings, balance, January 1, 20x2 Add: Earnings available to common stockholders, 20x2 Deduct: Cash dividends declared and paid in 20x2 Retained earnings, balance, December 31, 20x2 $320,500 185,000 181,000 $324,500 Comparative Balance Sheets For 20X1 and 20x2 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Year-End 20x1 $ 2,520,000 1,940,000 Year-End 20X2 $ 113,000 563,000 602,000 60,900 $1,338,900 91,600 $ 2,640,000 2,176,000 $ 481,600 607,000 664,000 30,900 $1,783,500 89,600 For 20X1 and 20X2 Year-End 20X1 Year-End 20x2 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities Long-term liabilities: Bonds payable, 20x2 Total liabilities Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 113,000 563,000 602,000 $ 481,600 607,000 664,000 60,900 30,900 $1,338,900 $1,783,500 91,600 89,600 $ 2,520,000 1,940,000 $ 2,640,000 2,176,000 580,000 $2,010,500 464,000 $2,337,100 $ 342,000 548,000 75,000 $ 965,000 135,000 $1,100,000 $ 581,000. 548,000 51,600 $1,180,600 242,000 $1,422,600 $ 90,000 $ 90,000 150,000 150,000 350,000 350,000 320,500 324,500 $ 910,500 $2,010,500 $ 914,500 $2,337,100 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.) 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 activities b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.) 20X1 20X2 Book value. c. If the market value of a share of common stock is 2.5 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.) P/E ratio times