Final answer:
Purchasing a new tractor by Sullivan Ranch Corporation signifies an investing activity as it involves acquiring a long-term asset for company operations. Operating, financing, and leasing activities are different categories that do not apply to the purchase of a new asset for ownership.
Step-by-step explanation:
When Sullivan Ranch Corporation purchases a new tractor, it represents an investing activity. This is because such transactions relate to the acquisition or disposal of long-term assets that a company utilizes in its operations. Investing activities are a fundamental part of a company's cash flow statement and give insights into the amount being spent on investment assets that are presumed to generate future income and cash flows.
Operating activities, on the other hand, would involve the day-to-day transactions associated with running the business. Financing activities involve actions that change the equity and debt composition of the company's balance sheet, such as issuing shares or taking on loans. Lastly, leasing would be indicative of a contractual agreement in which the company pays for the use of an asset without owning it, which is not the case when a company is purchasing an asset.
The correct answer to the question is B) Investing.