Refer to the following financial statements for Crosby Corporation:

CROSBY CORPORATION Income Statement For the Year Ended December 31, 2011
Sales		$	3,470,000
Cost of goods sold			2,230,000
Gross profit		$	1,240,000
Selling and administrative expense			678,000
Depreciation expense			298,000
Operating income		$	264,000
Interest expense			85,400
Earnings before taxes		$	178,600
Taxes			148,000
Earnings after taxes		$	30,600
Preferred stock dividends			10,000
Earnings available to common stockholders		$	20,600
Shares outstanding			150,000
Earnings per share		$	.14

Statement of Retained Earnings For the Year Ended December 31, 2011
Retained earnings, balance, January 1, 2011	$	385,800
Add: Earnings available to common stockholders, 2011		20,600
Deduct: Cash dividends declared and paid in 2011		175,000
Retained earnings, balance, December 31, 2011	$	231,400

Comparative Balance Sheets For 2010 and 2011
	Year-End 2010				Year-End 2011
Assets
Current assets:
Cash			$	179,000			$	94,600
Accounts receivable (net)				505,000				543,000
Inventory				702,000				707,000
Prepaid expenses				67,600				35,000
Total current assets			$	1,453,600			$	1,379,600
Investments (long-term securities)				94,000				85,600
Gross plant and equipment	$	2,090,000			$	2,630,000
Less: Accumulated depreciation		1,620,000				1,918,000
Net plant and equipment				470,000				712,000
Total assets			$	2,017,600			$	2,177,200
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable			$	320,000			$	604,000
Notes payable				512,000				512,000
Accrued expenses				77,800				55,800
Total current liabilities			$	909,800			$	1,171,800
Long-term liabilities:
Bonds payable, 2011				132,000				184,000
Total liabilities			$	1,041,800			$	1,355,800
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				385,800				231,400
Total stockholders equity			$	975,800			$	821,400
Total liabilities and stockholders equity			$	2,017,600			$	2,177,200

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:

		$
Adjustments to determine cash flow 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
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 2.4 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