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 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 $ 3,990,000 2,480,000 $ 1,510,000 $ $ $ $ $ 744,000 261,000 505,000 87,300 417,700 223,000 194,700 10,000 184,700 150,000 1.23 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 $ 889,100 184,700 148,000 $ 925,800 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 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities Long-term liabilities: Bonds payable, 20X2 Total liabilities Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Matulund $ 889,100 184,700 148,000 $ 925,800 Comparative Balance Sheets For 20X1 and 20X2 Year-End 20x1 $ 2,640,000 1,510,000 $ 180,000 535,000 684,000 67,000 $1,466,000 96,900 1,130,000 $2,692,900 $ 348,000 592,000 79,800 $1,019,800 194,000 $1,213,800 $ 90,000 150,000 350,000 000 100 Year-End 20x2 $ 3,250,000 1,771,000 $ 57,200 562,000 704,000 35,500 $1,358,700 87,900 1,479,000 $2,925,600 $ 557,000 592,000 51,800 $1,200,800 209,000 $1,409,800 $ 90,000 150,000 350,000 035 onn Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: payable Accounts. Notes payable apic expenses Accrued maks Total current liabilities. LOCKE Long-term liabilities: Bonds payable, 20X2 Total liabilities Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 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 261,000 (27,000) (20,000) 1,130,000 $2,692,900 $ 348,000 592,000 79,800 $1,019,800 $ 194,000 $1,213,800 $ 90,000 150,000 350,000 889, 100 $1,479, 100 $2,692,900 1,479,000 $2,925,600 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.) 194,700 $ 557,000 592,000 51,800 $1,200,800 209,000 $1,409,800 $ 90,000 150,000 350,000 925,800 $1,515,800 $2,925,600 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 Increase in prepaid expenses Increase in accounts payable Decrease in accrued expenses Total adjustments Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities 261,000 (27,000) (20,000) 31,500 209,000 28,100 $ $ $ $ $ 194,700 482,600 677,300 0 0 b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.) 20X1 20X2 Book value c. If the market value of a share of common stock is 2.6 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 times