1. Statement of cash flows Aa Aa The following activities have an impact on a firm's statement of cash flows. Classify each activity as belonging to either operating, investing, or financing activities. Scenario The firm sells a tract of land it has held for years. The firm increases its use of accounts payable extended by its suppliers. The firm improves its profit margin and increases net income. The firm tightens its credit policy and reduces the amount of credit sales. The firm buys back shares of common stock. The firm buys new equipment and machinery The firm issues new notes payable. Operating Activities Investing Activities Financing Activities