Characterize the following actions of a firm as financing, investing, or operating activities: scenario operating activity investing activity financing activity
__sells a tract of land it has held for years
__increases its use of trade credit from suppliers
__improves profit margin and increases net income
__issues new shares of preferred stock
__tightens its credit policy with its customers
__buys back shares of common stock
__buys new equipment and machinery issues new notes payable

1. Sells a tract of land it has held for years  - Investing Activity

2. Increases its use of trade credit from suppliers  - Operating activity

3. Improves profit margin and increases net income  - Operating activity

4. Issues new shares of preferred stock  - Financing activity

5. Tightens its credit policy with its customers  - Operating activity

6. Buys back shares of common stock  - Financing activity

7. Buys new equipment and machinery - Investing Activity

8. Issues new notes payable - Financing activity

answer; enforce the rules;

the correct answer is b.)