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Baker & Sons is issuing more shares of common stock and purchasing equipment with the proceeds of the stock offering. On the common-size balance sheet

Baker & Sons is issuing more shares of common stock and purchasing equipment with the proceeds of the stock offering. On the common-size balance sheet of the firm, this transaction will cause the percentage value for the:

  • A. inventory account to remain constant.
  • B. cash account to increase.
  • C. long-term debt account to decrease.
  • D. accounts payable account to increase.
  • E. retained earnings account to increase.

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