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

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Dryomys Dryomys · Answer 1 · 2019-09-13T08:35:55+02:00

Answer:

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