Refer to the following financial statements for Crosby CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales Cost of goods sold $4,110,000 2,680,000 $1,430,000 729,000 298,000 $ 403,000 80,700 S 322,300 210,000 $ 112,300 10,000 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 102,300 150,000 . 68 Statement of Retained Earnings For the Year Ended December 31, 20X2 Retained earnings, balance, January 1, 20X2 $554,00e Add: Earnings available to common stockholders, 20X2 102,300 169,000 $487,300 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: Cash Accounts receivable (net) Inventory Prepaid expenses 123,000 524,000 661,000 63,500 $1,371,500 94,900 $ 94,300 552,000 668,000 3, 000 $1,352,300 82,400 Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment 2,120,000 1,309,000 2,620,000 1,598,000 820,000 $2,286,400 Total assets $2,456,700 Liabilities and Stockholders Equity Current 1iabilities: Accounts payable Notes payable Accrued expenses Total current liabilities S389,000 509,000 72,400 $ 970,400 S 589,000 509,000 51,400 $1,149,400 Long-term liabilities: Bonds payable, 20X2 Total 1iabilities 172,000 $1,142,400 230,000 $1,379,400 Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity $ 90,000 150,000 350,000 554,000 $1,144,000 $2,286,400 $ 90,000 150,000 350,000 487,300 1,077,300 $2,456,700 Total 1iabilities 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 slgn.) 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 Decrease in prepaid expenses Increase in accounts payable 112,300 298,000 in accrued expenses Total adjustments Net cash flows from operating activities 298,000 410,300 Cash flows from investing activities: Increase in plant and equipment Net cash flows from investing activities Cash flows from financing activities: Increase in bonds payable Preferred stock dividends paid Common stock dividends paid Net cash flows from financing t increase in cash flows activities 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. lf the market value of a share of common stock is 3.1 times book value for 202, 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