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Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales $ 4,050,000 Cost of

Refer to the following financial statements for Crosby Corporation:

CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2
Sales $ 4,050,000
Cost of goods sold 2,690,000
Gross profit $ 1,360,000
Selling and administrative expense 652,000
Depreciation expense 266,000
Operating income $ 442,000
Interest expense 88,300
Earnings before taxes $ 353,700
Taxes 110,000
Earnings after taxes $ 243,700
Preferred stock dividends 10,000
Earnings available to common stockholders $ 233,700
Shares outstanding 150,000
Earnings per share $ 1.56

Statement of Retained Earnings For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 200,900
Add: Earnings available to common stockholders, 20X2 233,700
Deduct: Cash dividends declared and paid in 20X2 219,000
Retained earnings, balance, December 31, 20X2 $ 215,600

Comparative Balance Sheets For 20X1 and 20X2

Year-End 20X1 Year-End 20X2
Assets
Current assets:
Cash $ 107,000 $ 126,000
Accounts receivable (net) 502,000 511,000
Inventory 684,000 707,000
Prepaid expenses 62,200 36,100
Total current assets $ 1,355,200 $ 1,380,100
Investments (long-term securities) 90,100 86,600
Gross plant and equipment $ 2,010,000 $ 2,720,000
Less: Accumulated depreciation 1,670,000 1,936,000
Net plant and equipment 340,000 784,000
Total assets $ 1,785,300 $ 2,250,700
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable $ 304,000 $ 649,000
Notes payable 508,000 508,000
Accrued expenses 71,400 52,100
Total current liabilities $ 883,400 $ 1,209,100
Long-term liabilities:
Bonds payable, 20X2 111,000 236,000
Total liabilities $ 994,400 $ 1,445,100
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 200,900 215,600
Total stockholders equity $ 790,900 $ 805,600
Total liabilities and stockholders equity $ 1,785,300 $ 2,250,700

a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)

b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.)

c. If the market value of a share of common stock is 2.5 times book value for 20X2, what is the firms P/E ratio for 20X2? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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