financial statements for Crosby Corporation

Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2011



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
Statement of Retained Earnings
For the Year Ended December 31, 2011


Retained earnings, balance, January 1, 2011$320,500
Add: Earnings available to common stockholders, 2011
185,000
Deduct: Cash dividends declared and paid in 2011
181,000



Retained earnings, balance, December 31, 2011$324,500



Comparative Balance Sheets
For 2010 and 2011









Year-End
2010
Year-End
2011






Assets







Current assets:







Cash

$113,000

$481,600
Accounts receivable (net)


563,000


607,000
Inventory


602,000


664,000
Prepaid expenses


60,900


30,900









Total current assets

$1,338,900

$1,783,500
Investments (long-term securities)


91,600


89,600
Gross plant and equipment$2,520,000

$2,640,000

Less: Accumulated depreciation
1,940,000


2,176,000










Net plant and equipment


580,000


464,000









Total assets

$2,010,500

$2,337,100









Liabilities and Stockholders’ Equity







Current liabilities:







Accounts payable

$342,000

$581,000
Notes payable


548,000


548,000
Accrued expenses


75,000


51,600









Total current liabilities

$965,000

$1,180,600
Long-term liabilities:







Bonds payable, 2011


135,000


242,000









Total liabilities

$1,100,000

$1,422,600
Stockholders’ equity:







Preferred stock, $100 par value

$90,000

$90,000
Common stock, $1 par value


150,000


150,000
Capital paid in excess of par


350,000


350,000
Retained earnings


320,500


324,500









Total stockholders’ equity

$910,500

$914,500









Total liabilities and stockholders’ equity

$2,010,500

$2,337,100









a.Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with a minus sign.)
CROSBY CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2011


Cash flows from operating activities:

(Click to select)Net incomeNet loss
$
Adjustments to determine cash flow from operating activities:

(Click to select)Decrease in accrued expensesIncrease in accounts payableDecrease in prepaid expensesIncrease in inventoryDecrease in inventoryIncrease in accounts receivableAdd back depreciationDecrease in accounts receivable$
(Click to select)Increase in accounts receivableDecrease in prepaid expensesDecrease in accrued expensesIncrease in inventoryDecrease in accounts receivableIncrease in accounts payableDecrease in inventoryAdd back depreciation

(Click to select)Increase in inventoryDecrease in accrued expensesDecrease in prepaid expensesIncrease in accounts receivableDecrease in inventoryDecrease in accounts receivableAdd back depreciationIncrease in accounts payable

(Click to select)Increase in accounts payableIncrease in inventoryDecrease in inventoryAdd back depreciationDecrease in accrued expensesDecrease in prepaid expensesIncrease in accounts receivableDecrease in accounts receivable

(Click to select)Increase in accounts receivableDecrease in accrued expensesDecrease in prepaid expensesIncrease in accounts payableIncrease in inventoryDecrease in accounts receivableAdd back depreciationDecrease in inventory

(Click to select)Decrease in prepaid expensesAdd back depreciationIncrease in accounts receivableIncrease in accounts payableIncrease in inventoryDecrease in accrued expensesDecrease in inventoryDecrease in accounts receivable




Total adjustments




Net cash flows from operating activities
$



Cash flows from investing activities:

(Click to select)Common stock dividends paidPreferred stock dividends paidIncrease in plant and equipmentIncrease in bonds payableDecrease in investmentsIncrease in inventoryDecrease in accrued expensesIncrease in accounts receivable$
(Click to select)Increase in plant and equipmentPreferred stock dividends paidDecrease in accrued expensesCommon stock dividends paidDecrease in investmentsIncrease in inventoryIncrease in accounts receivableIncrease in bonds payable




Net cash flows from investing activities




Cash flows from financing activities:

(Click to select)Increase in plant and equipmentIncrease in inventoryIncrease in accounts receivableIncrease in bonds payableDecrease in investmentsCommon stock dividends paidDecrease in accrued expensesPreferred stock dividends paid

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