Refer to the following financial statements for Crosby Corporation:

CROSBY CORPORATION Income Statement For the Year Ended December 31, 2011
Sales		$	4,240,000
Cost of goods sold			2,810,000
Gross profit		$	1,430,000
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			150,000
Earnings per share		$	1.23

Statement of Retained Earnings For the Year Ended December 31, 2011
Retained earnings, balance, January 1, 2011	$	320,500
Add: Earnings available to common stockholders, 2011		185,000
Deduct: Cash dividends declared and paid in 2011		181,000
Retained earnings, balance, December 31, 2011	$	324,500

Comparative Balance Sheets For 2010 and 2011
	Year-End 2010				Year-End 2011
Assets
Current assets:
Cash			$	113,000			$	481,600
Accounts receivable (net)				563,000				607,000
Inventory				602,000				664,000
Prepaid expenses				60,900				30,900
Total current assets			$	1,338,900			$	1,783,500
Investments (long-term securities)				91,600				89,600
Gross plant and equipment	$	2,520,000			$	2,640,000
Less: Accumulated depreciation		1,940,000				2,176,000
Net plant and equipment				580,000				464,000
Total assets			$	2,010,500			$	2,337,100
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable			$	342,000			$	581,000
Notes payable				548,000				548,000
Accrued expenses				75,000				51,600
Total current liabilities			$	965,000			$	1,180,600
Long-term liabilities:
Bonds payable, 2011				135,000				242,000
Total liabilities			$	1,100,000			$	1,422,600
Stockholders equity:
Preferred stock, $100 par value			$	90,000			$	90,000
Common stock, $1 par value				150,000				150,000
Capital paid in excess of par				350,000				350,000
Retained earnings				320,500				324,500
Total stockholders equity			$	910,500			$	914,500
Total liabilities and stockholders equity			$	2,010,500			$	2,337,100

a.	Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with a minus sign.)

CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 2011
Cash flows from operating activities:
(Click to select)Net incomeNet loss		$
Adjustments to determine cash flow from operating activities:
(Click to select)Decrease in prepaid expensesIncrease in inventoryDecrease in accrued expensesIncrease in accounts payableDecrease in inventoryIncrease in accounts receivableAdd back depreciationDecrease in accounts receivable	$
(Click to select)Increase in accounts payableDecrease in inventoryDecrease in accrued expensesIncrease in accounts receivableDecrease in prepaid expensesDecrease in accounts receivableIncrease in inventoryAdd back depreciation
(Click to select)Decrease in inventoryIncrease in accounts payableIncrease in inventoryDecrease in accounts receivableIncrease in accounts receivableDecrease in prepaid expensesDecrease in accrued expensesAdd back depreciation
(Click to select)Decrease in accounts receivableDecrease in accrued expensesAdd back depreciationIncrease in inventoryDecrease in inventoryIncrease in accounts receivableIncrease in accounts payableDecrease in prepaid expenses
(Click to select)Decrease in accounts receivableIncrease in accounts receivableDecrease in accrued expensesIncrease in accounts payableAdd back depreciationDecrease in prepaid expensesIncrease in inventoryDecrease in inventory
(Click to select)Increase in accounts receivableDecrease in accrued expensesDecrease in accounts receivableDecrease in prepaid expensesDecrease in inventoryAdd back depreciationIncrease in accounts payableIncrease in inventory
Total adjustments
Net cash flows from operating activities		$
Cash flows from investing activities:
(Click to select)Increase in inventoryDecrease in accrued expensesCommon stock dividends paidIncrease in bonds payableDecrease in investmentsPreferred stock dividends paidIncrease in plant and equipmentIncrease in accounts receivable	$
(Click to select)Increase in bonds payableDecrease in investmentsPreferred stock dividends paidIncrease in plant and equipmentIncrease in inventoryIncrease in accounts receivableDecrease in accrued expensesCommon stock dividends paid
Net cash flows from investing activities
Cash flows from financing activities:
(Click to select)Increase in bonds payablePreferred stock dividends paidCommon stock dividends paidIncrease in inventoryIncrease in plant and equipmentDecrease in investmentsDecrease in accrued expensesIncrease in accounts receivable	$
(Click to select)Increase in accounts receivableCommon stock dividends paidIncrease in plant and equipmentDecrease in investmentsPreferred stock dividends paidDecrease in accrued expensesIncrease in inventoryIncrease in bonds payable
(Click to select)Increase in accounts receivableIncrease in plant and equipmentCommon stock dividends paidDecrease in investmentsPreferred stock dividends paidDecrease in accrued expensesIncrease in inventoryIncrease in bonds payable
Net cash flows from financing activities
Net increase (decrease) in cash flows		$

b.	Compute the book value per common share for both 2010 and 2011 for the Crosby Corporation. (Round your answers to 2 decimals places.)

Book value
2010	$
2011	$

c.	If the market value of a share of common stock is 2.5 times book value for 2011, what is the firms P/E ratio for 2011? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

P/E ratio

times