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 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Earnings available to common stockholders $ Shares outstanding Earnings per share $ 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 $4,180,000 2,740,000 $1,440,000 Total current liabilities Long-term liabilities: Bonds payable, 20x2 Total liabilities. $ $ 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 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 $ 653,000 244,000 543,000 82,700 460,300 191,000 269,300 10,000 259,300 150,000 1.73 993,200 259,300 202,000 $1,050,500 Comparative Balance Sheets For 20X1 and 20x2 $ $ 2,370,000 1,120,000 Year-End 20x1 $ 130,000 509,000 648,000 66,700 $1,353,700 97,300 1,250,000 $2,701,000 $ 343,000 577,000 73,800 $993,800 124,000 $1,117,800 $ 90,000 150,000 350,000 993,200 $1,583,200 $2,701,000 Year-End 20x2 $ 3,100,000 1,364,000 $ 94,000 537,000 661,000 38,700 $1,330,700 86,400 1,736,000 $3,153,100 $ 635,000 577,000 55,600 $1,267,600 245,000 $1,512,600 $ 90,000 150,000 350,000 1,050,500 $1,640,500 $3,153,100
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 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Earnings available to common stockholders $ Shares outstanding Earnings per share $ 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 $4,180,000 2,740,000 $1,440,000 Total current liabilities Long-term liabilities: Bonds payable, 20x2 Total liabilities. $ $ 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 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 $ 653,000 244,000 543,000 82,700 460,300 191,000 269,300 10,000 259,300 150,000 1.73 993,200 259,300 202,000 $1,050,500 Comparative Balance Sheets For 20X1 and 20x2 $ $ 2,370,000 1,120,000 Year-End 20x1 $ 130,000 509,000 648,000 66,700 $1,353,700 97,300 1,250,000 $2,701,000 $ 343,000 577,000 73,800 $993,800 124,000 $1,117,800 $ 90,000 150,000 350,000 993,200 $1,583,200 $2,701,000 Year-End 20x2 $ 3,100,000 1,364,000 $ 94,000 537,000 661,000 38,700 $1,330,700 86,400 1,736,000 $3,153,100 $ 635,000 577,000 55,600 $1,267,600 245,000 $1,512,600 $ 90,000 150,000 350,000 1,050,500 $1,640,500 $3,153,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
Transcribed Image Text:Cash flows from operating activities:
Adjustments to determine cashflow from operating activities:
CROSBY CORPORATION
Statement of Cash Flows
Total adjustments
Net cash flows from operating activities
Cash flows from investing activities:
For the Year Ended December 31, 20X2
Net cash flows from investing activities
Cash flows from financing activities:
Net cash flows from financing activities
20X1
20X2
Book value
P/E ratio
b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2
decimals places.)
times
$
$
$
$
0
0
0
c. If the market value of a share of common stock is 1.9 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.)
0
Transcribed Image Text: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
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
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
Notes payable
Accrued expenses
Total current liabilities
Long-term liabilities:
Bonds payable, 20x2
Total liabilities
Stockholders' equity:
Preferred stock, $100 par value
$4,180,000
2,740,000
$1,440,000
653,000
244,000
$ 543,000
82,700
460,300
191,000
Common stock, $1 par value
Capital paid in excess of par
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
$
$
$
269,300
10,000
259,300
150,000
1.73
Comparative Balance Sheets
For 20X1 and 20X2
993,200
259,300
202,000
$1,050,500
Year-End
20x1
$ 2,370,000
1,120,000
$ 130,000
509,000
648,000
66,700
$1,353,700
97,300
1,250,000
$2,701,000
$ 343,000
577,000
73,800
$993,800
124,000
$1,117,800
$
90,000
150,000
350,000
993,200
$1,583,200
$2,701,000
Year-End
20X2
$ 3,100.000
1,364,000
94,000
537,000
661,000
38,700
$1,330,700
86,400
$
1,736,000
$3,153,100
635,000
577,000
55,600
$1,267,600
245,000
$1,512,600
$ 90,000
150,000
350,000
1,050,500
$1,640,500
$3,153,100
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