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Energy Devices
Author(s):
Young, David W.
Functional Area(s):
   Finance/Financial Management
   Financial Accounting
Setting(s):
   Nonprofit
Difficulty Level: Beginner
Pages: 2
Teaching Note: Available. 
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Related Products:
Energy Devices
First Page and the Assignment Questions:

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

  1. Prepare a statement of cash flows for the year ending December 31. Use both the direct and indirect methods.
  2. What does the SCF tell you about EA that you couldn't learn from the other financial statements?