Refer to the following financial statements for Crosby Corporation CROSBY CORPORATION Income Statement For the Year Ended December 31, 2ex2 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 $ 4,240,000 2,640, 808 1,600,000 700,000 300,00 600,000 89,000 511,000 211,800 380,000 10,000 290,000 150,000 1.93 Statement of Retained Earnings For the Year Ended December 31, 20x2 Retained earnings, balance, January 1, 20X2 Add: Earnings available to common stockholders, 2ex2 Deduct: Cash dividends declared and paid in 20X2 Retained earnings, balance, December 31, 20x2 $ 80,30 299,000 250.000 $ 220,300 Year-End 20X2 $ 185,900 602,080 641, 680 32,000 $1,460, 900 85,000 $ 2,870,000 2,170,000 700,000 $2,245,900 Comparative Balance Sheets For 20X1 and 20x2 Year-End 20x1 Assets Current assets: Cash $ 112,000 Accounts receivable (net) 556,000 Inventory 633,000 Prepaid expenses 64,900 Total current assets $1,365,900 Investments (long-term securities) 92,300 Gross plant and equipment $ 2,120,000 Less: Accumulated depreciation 1,870,000 Net plant and equipment 250,000 Total assets $1,708, 200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 304,000 Notes payable 536,000 Accrued expenses 74,900 Total current liabilities $ 914,989 Long-term liabilities: Bonds payable, 20X2 123,000 Total liabilities $1,037,900 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 80,300 Total stockholders' equity S670,300 Total liabilities and stockholders' equity $1,708, 200 $ 635,000 536,000 56, 600 $1,227,600 208,000 $1,435,600 $ 90,000 150,000 350,000 220, 300 $ 810,300 $2,245,900 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 Net cash flows from operating activities Cash flows from investing activities Decrease in investments Increase in plant and equipment Net cash flows from investing activities 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 $ 0 $ 0 S 0 S 0 b. Compute the book value per common share for both 20X1 and pox 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 21 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) PE ratio times