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Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATIONIncome StatementFor the Year Ended December 31, 20X2Sales$ 3,330,000Cost of goods sold1,980,000Gross profit$ 1,350,000Selling and
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATIONIncome StatementFor the Year Ended December 31, 20X2Sales$ 3,330,000Cost of goods sold1,980,000Gross profit$ 1,350,000Selling and administrative expense588,000Depreciation expense230,000Operating income$ 532,000Interest expense81,600Earnings before taxes$ 450,400Taxes161,000Earnings after taxes$ 289,400Preferred stock dividends10,000Earnings available to common stockholders$ 279,400Shares outstanding150,000Earnings per share$ 1.86Statement of Retained EarningsFor the Year Ended December 31, 20X2Retained earnings, balance, January 1, 20X2$ 829,500Add: Earnings available to common stockholders, 20X2279,400Deduct: Cash dividends declared and paid in 20X2187,000Retained earnings, balance, December 31, 20X2$ 921,900Comparative Balance SheetsFor 20X1 and 20X2Year-End 20X1Year-End 20X2AssetsCurrent assets:Cash$ 150,000$ 547,800Accounts receivable (net)540,000551,000Inventory672,000708,000Prepaid expenses65,20032,400Total current assets$ 1,427,200$ 1,839,200Investments (long-term securities)96,20082,100Gross plant and equipment$ 2,850,000$ 3,100,000Less: Accumulated depreciation1,870,0002,100,000Net plant and equipment980,0001,000,000Total assets$ 2,503,400$ 2,921,300Liabilities and Stockholders EquityCurrent liabilities:Accounts payable$ 306,000$ 593,000Notes payable510,000510,000Accrued expenses74,90051,400Total current liabilities$ 890,900$ 1,154,400Long-term liabilities:Bonds payable, 20X2193,000255,000Total liabilities$ 1,083,900$ 1,409,400Stockholders equity:Preferred stock, $100 par value$ 90,000$ 90,000Common stock, $ 1 par value150,000150,000Capital paid in excess of par350,000350,000Retained earnings829,500921,900Total stockholders equity$ 1,419,500$ 1,511,900Total liabilities and stockholders equity$ 2,503,400$ 2,921,300- Prepare a statement of cash flows for the Crosby Corporation:
Note: Amounts to be deducted should be indicated with parentheses or a minus sign.
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