Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $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 Cost of goods sold Gross profit Selling and administrative expense Depreciation expense Operating income Interest expense Earnings before taxes $ es Earnings after taxes Preferred stock dividends $ $ 279,400 Earnings available to common stockholders Shares outstanding 150,000 Earnings per share 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 $829,500 279,400 187,000 $921,900 Retained earnings, balance, December 31, 20X2 Comparative Balance Sheets For 20X1 and 20x2 Year-End Year-End 20x2 20X1 Assets Current assets: 547,800 551,000 708,000 Cash 150,000 $ Accounts receivable (net) 540,000 672,000 65,200 Inventory Prepaid expenses 32,400 Total current assets $1,427,200 96,200 $1,839,200 82,100 Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation 2,850,000 3,100,000 1,870,000 2,100,000 Net plant and equipment 980,000 1,000,000 Total assets $2,503,400 $2,921,300 Liabilities and Stockholders Equity Current liabilities: Accounts payable Notes payable Accrued expenses 306,000 593,000 510,000 51,400 510,000 74,900 890,900 Total current liabilities $1,154,400 Long-term liabilities : Bonds payable, 20x2 Total liabilities Stockholders equity: 193,000 255,000 $1,083,900 $1,409,400 90,000 150,000 350,000 921,900 Preferred stock, 100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders equity 90,000 150,000 350,000 829,500 $1,419,500 $1,511,900 $2,503,400 $2,921,300 Total liabilities and stockholders' equity 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: Net income Adjustments to determine cashflow from operating activities Add back depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued expenses Total adjustments S C Net cash flows from operating activities C Cash flows from investing activities: Decrease in investments Increase in plant and equipment Net cash flows from investing activities 0 Cash flows from financing activities Increase in bonds payable Preferred stock dividends paid Common stock dividends paid Net cash flows from financing activities Net increase in cash flows 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.) times P/E ratio