Income Statement For the Year Ended December 31, 20x2 Sales $ 3,880,000 Cost of goods sold 2,620,000 Gross profit $ 1,260,000 Selling and administrative expense 656,000 Depreciation expense 300,000 Operating income $ 304,000 Interest expense 87,900 Earnings before taxes. $ 216,100 Taxes 155,000 Earnings after taxes $ 61,100 Preferred stock dividends 10,000 Earnings available to common stockholders $ 51,100 Shares outstanding Earnings per share. 150,000 0.34 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 $ 855,400 51,100 153,000 $ 753,500 Comparative Balance Sheets For 28x1 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 $ 2,520,000 1,450,000 $ 134,000 526,000 $ 66,500 531,000 649,000 719,000 66,800 $1,375,800 99,500 39,100 $1,355,600 82,900 $ 3,000,000 1,750,000 1,070,000 $2,545,300 $ 1,250,000 $2,688,500 315,000 510,000 76,900 $ 901,900 198,000 $1,099,900 $ 90,000 150,000 $ 558,000 510,000 58,000 $1,126,000 219,000 $1,345,000 $ 90,000 150,000 350,000 753,500 $1,343,500 $2,688,500 350,000 855,400 $1,445,400 $2,545,300 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: $ $ 0 Net cash flows from investing activities $ 0 Cash flows from financing activities: Net cash flows from financing activities $ 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.) 20X1 20X2 Book value c. If the market value of a share of common stock is 3.6 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.)