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

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