Refer to the following financial statements for crosby corporation:

crosby corporation
income statement
for the year ended december 31, 20x2
sales $ 3,880,000
cost of goods sold 2,260,000

gross profit $ 1,620,000
selling and administrative expense 684,000
depreciation expense 319,000

operating income $ 617,000
interest expense 88,700

earnings before taxes $ 528,300
taxes 180,000

earnings after taxes $ 348,300
preferred stock dividends 10,000

earnings available to common stockholders $ 338,300
shares outstanding 150,000
earnings per share $ 2.26

statement of retained earnings
for the year ended december 31, 20x2
retained earnings, balance, january 1, 20x2 $ 564,500
add: earnings available to common stockholders, 20x2 338,300
deduct: cash dividends declared and paid in 20x2 191,000
retained earnings, balance, december 31, 20x2 $ 711,800

comparative balance sheets
for 20x1 and 20x2

year-end
20x1 year-end
20x2
assets
current assets:
cash $ 146,000 $ 277,100
accounts receivable (net) 518,000 549,000
inventory 650,000 721,000
prepaid expenses 62,100 30,100

total current assets $ 1,376,100 $ 1,577,200
investments (long-term securities) 92,600 87,600
gross plant and equipment $ 2,250,000 $ 2,760,000
less: accumulated depreciation 1,380,000 1,699,000

net plant and equipment 870,000 1,061,000

total assets $ 2,338,700 $ 2,725,800

liabilities and stockholders’ equity
current liabilities:
accounts payable $ 348,000 $ 588,000
notes payable 576,000 576,000
accrued expenses 73,200 56,000

total current liabilities $ 997,200 $ 1,220,000
long-term liabilities:
bonds payable, 20x2 187,000 204,000

total liabilities $ 1,184,200 $ 1,424,000
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 564,500 711,800

total stockholders’ equity $ 1,154,500 $ 1,301,800

total liabilities and stockholders’ equity $ 2,338,700 $ 2,725,800

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.)

c. if the market value of a share of common stock is 3.4 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.)