Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $ Cost of goods sold Gross profit $ Selling and administrative expense Depreciation expense Operating income $ Interest expense Earnings before taxes $ Taxes Earnings after taxes Preferred stock dividends Earnings available to common stockholders $ Shares outstanding Earnings per share 2,500,000 1,475, eee 1,025,000 500,000 175, eee 350,000 100,000 250,000 90,000 160,000 12,500 147,500 120,000 1.23 $ 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 $575,000 147,500 55.000 $ 667,500 Year-End 2ex2 int $ 112,500 375.000 462,500 35,000 $985,000 75,000 $ 2,725,000 1,300,000 Comparative Balance Sheets For 20x1 and 20x2 Year-End 20x1 Assets Current assets: Cash $ 80,000 Accounts receivable (net) 337,500 Inventory 450,000 Prepaid expenses 55,000 Total current assets $922,500 Investments (long-tern securities) 37,500 Gross plant and equipment $ 2,250,000 Less: Accumulated depreciation 1,125,000 Net plant and equipment 1,125,000 Total assets $2,135,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 287,500 Totes payable 450,000 Accrued expenses 25,000 Total current liabilitles $ 812,500 Long-term liabilities: fonds payable, 20x2 80,000 Total liabilities $ 192,500 Stockholders' equity: Preferred stock, $100 par value 5 96.000 Comon stock, $1 par value 126,000 Capital paid in excess of par 416,000 Retained earnings 601 SOO Total stockholders' equity $1, 242,500 Total liabilities and stockholders equity $2,135,000 1,425,000 $2,485.000 $ 500,000 450,000 52.500 $1,007,500 125,000 $1,132,500 5 95,000 126.000 416,000 667,500 $1,305,500 $2,438,000 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with pa 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 Not cash flows from operating activitos Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities b. Compute the book value per common share for both 20%1 and 20x2 for the Crosby Corporation (Round your answers to 2 decimals places.) Book value 20X1 20X2 c. If the market value of a share of common stockis 3 3 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.) PE times