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.) 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 3.4 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.)