h02: Chapter 2 Homework A Saved Help Save & Exit Submit Check my work Refer to the following financial statements for Crosby Corporation: 10 points eBook CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $ 4,240,000 Cost of goods sold 2,810,000 Gross profit $ 1,430,000 Selling and administrative expense 738,000 Depreciation expense 236,000 Operating income $ 456,000 Interest expense 88,000 Earnings before taxes $ 368,000 Taxes 173,000 Earnings after taxes $ 195,000 Preferred stock dividends 10,000 Earnings available to common stockholders $ 185,000 Shares outstanding 150,000 Earnings per share $ 1.23 Hint Print References 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 $320,500 185,000 181,000 $ 324,500 Check my work Year-End 20X2 Joints $ 481,600 607,000 664,000 30,900 $1,783,500 89,600 eBook $ 2,640,000 2,176,000 464,000 $2,337,100 Hint Comparative Balance Sheets For 20x1 and 20x2 Year-End 20x1 Assets Current assets: Cash $ 113,000 Accounts receivable (net) 563,000 Inventory 602,000 Prepaid expenses 60,900 Total current assets $1,338,900 Investments (long-term securities) 91,600 Gross plant and equipment $ 2,520,000 Less: Accumulated depreciation 1,940,000 Net plant and equipment 580,000 Total assets $2,010,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 342,000 Notes payable 548,000 Accrued expenses 75,000 Total current liabilities 965,000 Long-term liabilities: Bonds payable, 20X2 135,000 Total liabilities $1,100,000 Stockholders' equity: Preferred stock, $100 par value 90,000 Common stock, $1 par value 150,000 Capital paid in excess of par 350,000 Retained earnings 320,500 Total stockholders' equity $ 910,500 Total liabilities and stockholders' equity $2,010,500 Print $ 581,000 548,000 51,600 $1,180,600 References 242,000 $1,422,600 $ 90,000 150,000 350,000 324,500 914,500 $2,337,100 a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.) Dints CROSBY CORPORATION Statement of Cash Flows For the Year Ended December 31, 20x2 Cash flows from operating activities: eBook Adjustments to determine cashflow from operating activities: Hint Print References 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 Check my work NEL CASTI TUWS ITUITI Cy a CIVILIUS points b. Compute the book value per common share for both 20X1 and 20x2 for the Crosby Corporation. (Round your answers to decimals places.) eBook Book value Hint 20X1 20X2 Print References c. If the market value of a share of common stock is 2.5 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