Refer to the following financial statements for Crosby Corporation:

CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2
Sales		$	3,550,000
Cost of goods sold			2,280,000
Gross profit		$	1,270,000
Selling and administrative expense			723,000
Depreciation expense			268,000
Operating income		$	279,000
Interest expense			88,500
Earnings before taxes		$	190,500
Taxes			115,000
Earnings after taxes		$	75,500
Preferred stock dividends			10,000
Earnings available to common stockholders		$	65,500
Shares outstanding			150,000
Earnings per share		$	0.44

Statement of Retained Earnings For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2	$	1,379,800
Add: Earnings available to common stockholders, 20X2		65,500
Deduct: Cash dividends declared and paid in 20X2		174,000
Retained earnings, balance, December 31, 20X2	$	1,271,300

Comparative Balance Sheets For 20X1 and 20X2
	Year-End 20X1				Year-End 20X2
Assets
Current assets:
Cash		$	146,000			$	106,100
Accounts receivable (net)			502,000				608,000
Inventory			639,000				665,000
Prepaid expenses			62,200				34,700
Total current assets		$	1,349,200			$	1,413,800
Investments (long-term securities)			97,600				83,100
Gross plant and equipment	$ 2,620,000				$ 3,150,000
Less: Accumulated depreciation	1,040,000				1,308,000
Net plant and equipment			1,580,000				1,842,000
Total assets		$	3,026,800			$	3,338,900
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable		$	309,000			$	637,000
Notes payable			542,000				542,000
Accrued expenses			79,000				50,600
Total current liabilities		$	930,000			$	1,229,600
Long-term liabilities:
Bonds payable, 20X2			127,000				248,000
Total liabilities		$	1,057,000			$	1,477,600
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			1,379,800				1,271,300
Total stockholders equity		$	1,969,800			$	1,861,300
Total liabilities and stockholders equity		$	3,026,800			$	3,338,900

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

Cash flows from operating activities:

Net income

Adjustments to detmine cash from operation activies

ADd back depreciation

Increase sin accounts receivable

Increase in inventory

Decrease in prepaid expense

Increase in accounts payable

Decrease in accrued expense

Total Adjustment

Net cash flow from operation expense

Cash flows from investing activies

Decrease in investments

Increase in plant and equiptment

Net cash flow from investing activies

Cash flows from financing activies

_____

______

______

Net cash flows from financcing activies

_______

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 for 20X1 ______ 20X2 ________

c. If the market value of a share of common stock is 3.3 times book value for 20X1, what is the firms P/E ratio for 20X2 vs. 20X1? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

PE Ratio ______times