Hello,
I am currently having trouble with the below finance problem. The full problem is attached, and if anything else is needed let me know. Thank you for your time and help.
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 $ 3,990,000 2,480,000 1,510,000 744,000 261,000 505,000 87,300 417,700 223,000 194,700 10,000 184,700 150,000 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 $ 889,100 184,700 148,000 $ 925,800 Year-End 20x2 $ 57,200 562,000 704,000 35,500 $1,358,700 87.900 $3,250,000 1,771,000 Comparative Balance Sheets For 20%1 and 20x2 Year End 20x1 Assets Current assets: Cash $ 180,000 Accounts receivable (net) 535,000 Inventory 684,000 Prepaid expenses 67,000 Total current assets $1,466,000 Investments (long-term securities) 96,900 Gross plant and equipoent $ 2,640,000 Less: Accumulated depreciation 1,510.000 het plant and equipment 1,130,000 Total assets $2,692,900 Liabilities and stockholders' Equity Current liabilities: Accounts payable $ 348,000 Hotes payable 592,000 Accrued expenses 79.800 Total current liabilities $1,019,800 Long term liabilities: Bonds payable, 20x2 195.000 Total liabilities $1,213,800 Stockholders' equity: Preferred stock, $100 par value $ 90,000 Cormon stock, $1 par value 150,000 Capital paid in excess of par 350,000 Hetained earnings 889, 100 Total stockholders' equity $1,479, 100 Total liabilities and stockholders' equity $2,692,900 1,479,000 $2,925,600 $ 557,000 592,000 51,800 $1,200,800 209,000 $1,409,800 $ 90,000 150,000 350,000 925,800 $1,515,880 $2,925,600 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: Net income Adjustments to determine cashflow from operating activities Total adjustments Net cash flows from operating activilles Cash flows from investing activities Net cash flows investing activities Prev 10 10 Next 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.) Book value 20x1 20X2 c. If the market value of a share of common stock is 2.6 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.) PIEDO
