Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

HBX reported the following changes in its balance sheet accounts in 2016: Accounts receivable increased by $40; accounts payable decreased by $25; accrued expenses increased by $20; net fixed assets decreased by $60. What would be the net change in the cash account

Sagot :

Answer:

Change in Cash is $15

Explanation:

The computation of the net change in the cash account is as follows:

But before that the following calculations need to be done

Change in Liabilities & Stockholders’ Equity = Change in Accounts Payable + Change in Accrued Expenses

= -$25 + $20

= -$5

Now  

Change in Assets = Change in Liabilities & Stockholders’ Equity

= -$5

And,  

Change in Assets = Change in Cash + Change in Accounts Receivable + Change in Net Fixed Assets

-$5 = Change in Cash + $40 - $60

So, the Change in Cash is $15

So, net change in cash account is $15

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.