Problem 2-28 Statement of cash flows [LO2-4] Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Enced December 11, 20x2 3 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation expense Operating income Interest expense Earrings before taxes Taxes Earrings after taxes. Preferred stock dividends Earnings available to common stockholders Shares outstanding. Earnings per share. 3 $ 3 3 $ 3 3,880,000 2,628, 08 1, 268, 080 656,000 308,000 304,808 87,900 216, 100 155,000 61,100 10,000 51, 100 158,088 0.34 Statement of Retaired 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 28x2 Retained earnings, balance, December 31, 20X2 $ 855,400 51,102 153,882 $ 753,502 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 Comparative Balance Sheets For 20X1 and 20X2 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 Year-End 20X1 $ 2,520,000 1,450,000 $ 134,000 526,000 649,000 66,800 $1,375,800 99,500 1,070,000 $2,545,300 $ 315,000 510,000 76,900 $ 901,900 198,000 $1,099,900 90,000 150,000 350,000 855,400 $1,445,400 $2,545,300 $ Year-End 20X2 $ 3,000,000 1,750,000 $ 66,500 531,000 719,000 39, 100 $1,355,600 82,900 1,250,000 $2,688,500 $ 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 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