Coleman Camping Supplies decided to use cash to purchase a new tent sewing machine. It will effectively double their ability to produce tents.

How will this purchase affect Coleman's operating activities?

The purchase will increase their finished goods inventory and hopefully increase revenue.

Explanation:

From the given, we can interpret that the purchase of the new tent sewing machine will double the ability of company to produce tents.

The new tent sewing machine triggers the productivity of the company in turn this would increase or raise the level of inventory. Tents are not perishable goods so, there are no possibilities of wastage of goods.

Therefore, increase in inventory would increase the revenue of the Coleman Camping Supplies company.