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Refer to the following financial statements for Crosby Corporation:
| CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 |
| Sales | | $ | 2,950,000 |
| Cost of goods sold | | | 1,740,500 |
| Gross profit | | $ | 1,209,500 |
| Selling and administrative expense | | | 590,000 |
| Depreciation expense | | | 206,500 |
| Operating income | | $ | 413,000 |
| Interest expense | | | 118,000 |
| Earnings before taxes | | $ | 295,000 |
| Taxes | | | 106,200 |
| Earnings after taxes | | $ | 188,800 |
| Preferred stock dividends | | | 14,750 |
| Earnings available to common stockholders | | $ | 174,050 |
| Shares outstanding | | | 120,000 |
| Earnings per share | | $ | 1.45 |
| |
| Statement of Retained Earnings For the Year Ended December 31, 20X2 |
| Retained earnings, balance, January 1, 20X2 | $ | 678,500 |
| Add: Earnings available to common stockholders, 20X2 | | 174,050 |
| Deduct: Cash dividends declared and paid in 20X2 | | 64,900 |
| Retained earnings, balance, December 31, 20X2 | $ | 787,650 |
| |
| Comparative Balance Sheets For 20X1 and 20X2 |
| | Year-End 20X1 | | Year-End 20X2 |
| Assets | | | | | | | |
| Current assets: | | | | | | | |
| Cash | | $ | 94,400 | | | $ | 132,750 |
| Accounts receivable (net) | | | 398,250 | | | | 442,500 |
| Inventory | | | 531,000 | | | | 545,750 |
| Prepaid expenses | | | 64,900 | | | | 41,300 |
| Total current assets | | $ | 1,088,550 | | | $ | 1,162,300 |
| Investments (long-term securities) | | | 103,250 | | | | 88,500 |
| Gross plant and equipment | $ 2,655,000 | | | | $ 3,215,500 | | |
| Less: Accumulated depreciation | 1,327,500 | | | | 1,534,000 | | |
| Net plant and equipment | | | 1,327,500 | | | | 1,681,500 |
| Total assets | | $ | 2,519,300 | | | $ | 2,932,300 |
| Liabilities and Stockholders Equity | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | $ | 339,250 | | | $ | 590,000 |
| Notes payable | | | 531,000 | | | | 531,000 |
| Accrued expenses | | | 88,500 | | | | 67,850 |
| Total current liabilities | | $ | 958,750 | | | $ | 1,188,850 |
| Long-term liabilities: | | | | | | | |
| Bonds payable, 20X2 | | | 94,400 | | | | 147,500 |
| Total liabilities | | $ | 1,053,150 | | | $ | 1,336,350 |
| Stockholders equity: | | | | | | | |
| Preferred stock, $100 par value | | $ | 105,000 | | | $ | 105,000 |
| Common stock, $1 par value | | | 135,000 | | | | 135,000 |
| Capital paid in excess of par | | | 425,000 | | | | 425,000 |
| Retained earnings | | | 801,150 | | | | 787,650 |
| Total stockholders equity | | $ | 1,466,150 | | | $ | 1,452,650 |
| Total liabilities and stockholders equity | | $ | 2,519,300 | | | $ | 2,789,000 |
| |
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)
b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.)
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