Energy Devices, Inc. (EDI), purchases energy-saving devices in bulk, repackages them, and sells them to hardware stores in various locales. Its products consist of shower nozzles that restrict the flow of water, thermostats with timers, and storm windows.
Exhibit 1 contains the company’s balance sheets as of December 31 of the two most recent years, and its operating statement for the most recent year.
Assignment
- Prepare a statement of cash flows for the year ending December 31. Use both the direct and indirect methods.
- What does the SCF tell you about EDI that you couldn't learn from the other financial statements?