Question 2 (10 marks)

1. Given sales revenue of $200,000, how can it be determined whether or not $200,000 cash was received from customers? (3 marks)
2. Investing activities include the acquisition and disposition of assets. Provide four specific examples. Why purchase of inventory is not considered as investing activities? (4 marks)
3. What are the three broad classes of cash flows. Why this classification is needed? (3 marks)