Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales Cost of goods sold 2,200,000 1,300,000 900,000 420,000 150,000 330,000 90,000 240,000 80,000 160,000 10,000 150,000 120,000 1.25 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 Statement of Retained Earnings For the Year Ended December 31, 20X2 $500,000 150,000 50,000 $600,000 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 Comparative Balance Sheets For 20X1 and 20X2 Year-End 20X1 Year-End 20X2 Assets Current assets $ 70,000 300,000 410,000 50,000 $ 830,000 80,000 Cash Accounts receivable (net) Inventory $100,000 350,000 430,000 30,000 $ 910,000 70,000 repaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment $ 2,000,000 1,000,000 $2,400,000 1,150,000 1,000,000 $1,910,000 1,250,000 $ 2,230,000 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Notes payable Accrued expenses Total current liabilities $ 250,000 400,000 70,000 $ 720,000 $ 440,000 400,000 50,000 $ 890,000 Long-term liabilities Bonds payable, 20X2 Total liabilities 70,000 $ 790,000 120,000 $1,010,000 Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity $ 90,000 120,000 410,000 500,000 $1,120,000 $1,910,000 $ 90,000 120,000 410,000 600,000 $1,220,000 $2,230,000 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.) Answer is complete but not entirely correct CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 20X2 Cash flows from operating activities $ 110,500 Net income Adjustments to determine cashflow from operating activities Add back depreciation Increase in accounts receivable(30,000) Increase in inventory Decrease in prepaid expenses10,000 Increase in accounts payable35,000 Decrease in accrued expenses (5,000) Total adjustments Net cash flows from operating $ 50,000 (20,000) $ 40,000 $ 150,500 activities Cash flows from investing activities Decrease in investments Increase in plant and equipment Net cash flows from investing (30,000) (100,000) $ (130,000) activities Cash flows from financing activities $ 50,000 Preferred stock dividends paid (10,500) stock dividends paid (50,000) Increase in bonds payable Net cash flows from financing activities $ (10,500) 10,000 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 3.3 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 imes