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