Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Selling and administrative expense Sales Cost of goods sold Gross profit Depreciation expense Earnings before taxes Taxes Operating income Interest expense Earnings after taxes Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share $ 3,900,000 2,470,000 $ 1,430,000 618,000 290,000 $ 522,000 87,100 $ 434,900 127,000 $ 307,900 10,000 $ 297,900 150,000 $ 1.99 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 $ 1,079,600 297,900 170,000 $ 1,207,500 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities Long-term liabilities: Bonds payable, 202 Total liabilities Stockholders' equity: Preferred stock, $100 par value Common stock, $ 1 par value Capital paid in excess of par Retained earnings Comparative Balance Sheets For 20X1 and 20X2 Year-End 20X1 $ 2,630,000 1,370,000 Year-End 20X2 $ 102,000 507,000 698,000 60,300 $ 1,367,300 97,000 1,260,000 $ 2,724,300 $ 3,280,000 1,660,000 $ 48,500 600,000 754,000 37,900 $ 1,440,400 88,100 1,620,000 $ 3,148,500 $ 321,000 553,000 75,700 $ 949,700 105,000 $ 1,054,700 $ 90,000 150,000 350,000 1,079,600 $ 1,669,600 $ 583,000 553,000 53,000 $ 1,189,000 162,000 $ 1,351,000 $ 90,000 150,000 350,000 1,207,500 $ 1,797,500 $ 3,148,500 Total stockholders' equity Total liabilities and stockholders' equity $ 2,724,300 a. Prepare a statement of cash flows for the Crosby Corporation: Note: Amounts to be deducted should be indicated with parentheses or a minus sign. Cash flows from operating activities: Net income CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 20X2 Adjustments to determine cashflow from operating activities: $ 507,900 Total adjustments $ 0 Net cash flows from operating activities $ 507,900 Cash flows from investing activities: Net cash flows from investing activities $ 0 Cash flows from financing activities: Net cash flows from financing activities $ 0