Problem 2-28 Statement of cash flows (LO2-4] Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Slatenen For the Year Ended December 31, 20x2 Sales Cost of goods sold Gross profit 5e11tna and administrative expense Depreciation expense Operating income $ Interest expense Earnings before taxes $ 3 Taxes Earnings after taxes $ Preferred stock dividends Earnings available to connon stockholders $ Shares outstandine Earninas per share $ ,89, een 2,62, 1, 26, 656,GAN 380,869 364,899 87,900 216, 180 155,000 61,188 18,888 51,168 159, Statenent of Retained Earnings For the Year Ended December 31, 20X2 Relaimed warnings, balance, January 1, 20x2 Add: Earnings available to conteni stackholders, 28x2 Deduct: Cash dividends declared and paid in 28x2 Retained earnings, balance, December 31, 2X2 $ 855,480 51,182 15,02 $ 753,502 Year-End 20X2 $ 66,500 531,000 719,000 39,100 $1,355,600 82,900 $ 3,000,000 1,750,000 1,250,000 $2,688,500 Comparative Balance Sheets For 20X1 and 20X2 Year-End 20x1 Assets Current assets: Cash $ 134,000 Accounts receivable (net) 526,000 Inventory 649,000 Prepaid expenses 66,800 Total current assets $1,375,800 Investments (long-term securities) 99,500 Gross plant and equipment $ 2,520,000 Less: Accumulated depreciation 1,450,000 Net plant and equipment 1,070,000 Total assets $2,545,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 315,000 Notes payable 510,000 Accrued expenses 76,900 Total current liabilities $ 901,900 Long-term liabilities: Bonds payable, 20x2 198,000 Total liabilities $1,099,900 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 855,400 Total stockholders' equity $1,445,400 Total liabilities and stockholders' equity $2,545,300 $ 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