Answered

IDNLearn.com provides a user-friendly platform for finding and sharing accurate answers. Discover prompt and accurate answers from our experts, ensuring you get the information you need quickly.

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

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Trust IDNLearn.com for all your queries. We appreciate your visit and hope to assist you again soon.