Energy Associates (EA), a nonprofit agency, purchases energy-saving devices in bulk, repackages them, and sells them to low-income consumers. Its products consist of shower nozzles that restrict the flow of water, thermostats with timers, and storm windows.
Exhibit 1 contains the agency’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 EA that you couldn't learn from the other financial statements?