Refer to the following financial statements for Crosby Corporation:

CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2
Sales		$	3,900,000
Cost of goods sold			2,470,000
Gross profit		$	1,430,000
Selling and administrative expense			618,000
Depreciation expense			290,000
Operating income		$	522,000
Interest expense			87,100
Earnings before taxes		$	434,900
Taxes			127,000
Earnings after taxes		$	307,900
Preferred stock dividends			10,000
Earnings available to common stockholders		$	297,900
Shares outstanding			150,000
Earnings per share		$	1.99

Statement of Retained Earnings For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2	$	1,079,600
Add: Earnings available to common stockholders, 20X2		297,900
Deduct: Cash dividends declared and paid in 20X2		170,000
Retained earnings, balance, December 31, 20X2	$	1,207,500

Comparative Balance Sheets For 20X1 and 20X2
	Year-End 20X1				Year-End 20X2
Assets
Current assets:
Cash		$	102,000			$	48,500
Accounts receivable (net)			507,000				600,000
Inventory			698,000				754,000
Prepaid expenses			60,300				37,900
Total current assets		$	1,367,300			$	1,440,400
Investments (long-term securities)			97,000				88,100
Gross plant and equipment	$ 2,630,000				$ 3,280,000
Less: Accumulated depreciation	1,370,000				1,660,000
Net plant and equipment			1,260,000				1,620,000
Total assets		$	2,724,300			$	3,148,500
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable		$	321,000			$	583,000
Notes payable			553,000				553,000
Accrued expenses			75,700				53,000
Total current liabilities		$	949,700			$	1,189,000
Long-term liabilities:
Bonds payable, 20X2			105,000				162,000
Total liabilities		$	1,054,700			$	1,351,000
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			1,079,600				1,207,500
Total stockholders equity		$	1,669,600			$	1,797,500
Total liabilities and stockholders equity		$	2,724,300			$	3,148,500

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		$307,900
Adjustments to determine cashflow from operating activities:
Add back depreciation	$290,000
Increase in accounts receivable
Increase in inventory
Decrease in prepaid expenses	22,400
Increase in accounts payable	262,000
Decrease in accrued expenses
Total adjustments
Net cash flows from operating activities
Cash flows from investing activities:
Decrease in investments	8,900
Increase in plant and equipment
Net cash flows from investing activities
Cash flows from financing activities:
Increase in bonds payable	$57,000
Preferred stock dividends paid
Common stock dividends paid
Net cash flows from financing activities
Net increase in cash flows