Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $3,860,000 Cost of goods sold 2,330,000 Gross profit $1,530,000 Selling and administrative expense 744,000 Depreciation expense 279,000 Operating income 507,000 Interest expense 81,000 Earnings before taxes 426,000 Taxes 198,000 Earnings after taxes $ 228,000 Preferred stock dividends 10,000 Earnings available to common stockholders $ 218,000 Shares outstanding 150,000 Earnings per share $ 1.45 $ $ 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 $725,100 218,000 148,000 $795, 100 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 Decrease 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 plant and equipment Decrease in investments Net cash flows from investing activities Cash flows from financing activities: Common stock dividends paid Preferred stock dividends paid Increase in bonds payable 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 $ 4.13 20X1 20x2 $ 3.69 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.) P/E ratio 11,41 times