Question

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 อ. 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

Answer 1

cash flow statement
cash flow from operating activities
net income		112300
add depreciation		298000
changes in working capital
increase in A/R		-28000
increase in inventory		-7000
decrease in prepaid expense		25500
increase in A/P		200000
decrease in accrued expenses		-21000
cash flow from operating activities			579800
cash flow from investing activities
decrease in investment		12500
increase in plant and equipment		-500000
cash flow from investing activities			-487500
cash flow from financing activities
increase in bonds payable		58000
payment of preferred dividend		-10000
payment of dividend to common stock		-169000
cash flow from financing activities			-121000
net increase in cash			-28700
beginning cash balance			123000
year end cash balance			94300
2-		2011	2012
common stock		150000	150000
capital paid in excess of par		350000	350000
retained earning		554000	487300
total book value of common stock		1054000	987300
no of common stock outstanding		150000	150000
book value per common stock		7.03	6.58
3-
book value per share	6.58
market price	6.58*3.1	20.398
EPS		0.68
PE ratio = market price/EPS	30.00