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 3,330,000 1,980,000 1,350,000 588,000 230,000 532,000 81,600 450,400 161,000 289,400 10,000 279,400 150,000 1.86 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 $ 829,500 279,400 187,000 $ 921,900 Year-End 20x2 $ 547,800 551,000 708,000 32,400 $1,839,200 82,100 $ 3,100,000 2,100,000 1,000,000 $2,921,300 Comparative Balance Sheets For 20xi and 20x2 Year-End 20x1 Assets Current assets: Cash 150,000 Accounts receivable (net) 540,000 Inventory 672,000 Prepaid expenses 65,200 Total current assets $1,427,200 Investments (long-term securities) 96,200 Gross plant and equipment $ 2,850,000 Less: Accumulated depreciation 1,870,000 Net plant and equipment 980,000 Total assets $2,503,400 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 306,000 Notes payable 510,000 Accrued expenses 74,900 Total current liabilities $ 890,900 Long-term liabilities: Bonds payable, 20x2 193,000 Total liabilities $1,983,900 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 829,500 Total stockholders' equity $1,419,500 Total liabilities and stockholders' equity $2,503,400 $ 593,000 510,000 51,400 $1,154,400 255,000 $1,409,400 $ 90,000 150,000 350,000 921,900 $1,511,900 $2,921,300 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 b. Compute the book value per common share for both 20X1 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 stock is 2.8 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.) P/E ratio times