2 part question using same informationon

Carson Company is a service provider with a December 31st year end. Carson performs all customer services on account and purchases 100% of the asset supplies on account from vendor Natural Products. Treat each Carson Company exam question as stand alone. Carson needs your assistance in preparing the company's 12/31/2020 Statement of Cash flows and in order to assist you with your work, Carson provides you with the following: The company's comparative balance sheet (showing all accounts except the equity accounts which have been intentionally omitted): Account Description 12/31/2019 12/31/2020 Debit Credit Debit Credit Cash $18,245 $20,225 Accounts Receivable 24,100 57,200 Supplies 16,200 17,800 Prepaid Insurance Expense 3,435 3,625 Vehicles 100,000 55,000 Equipment 125,000 137,000 Accumulated Depreciation $92,675 $75,625 Accounts Payable- Natural Products 4,425 1,600 Dividend Payable 14,000 8,000 Rent Payable 3,000 3,100 Salaries Payable 2,280 3,000 Utilities Payable 600 550 (II) The company's 12/31/2020 income statement: Service Fee Revenue $310,000 Less: Operating Expense Advertising Expense Depreciation Expense Insurance Expense Rent Expense Salaries Expense Supplies Expense Travel Expense Utilities Expense Net Income from Operations 37,000 21,065 8,550 33,875 97,300 27,000 32,000 5,550 ($262,340) $47,660 Other: Gain on asset disposal 1,315 Net Income $48,975 Consider the above information and calculate the combined cash outflow for the following 2 items: (i) cash paid during 2020 for utilities and (ii) cash paid to vendor Natural Products during 2020 for purchases of supplies. A. $(36,975) outflow B. $(35,425) outflow o C. None of the answer choices provided are correct. OD. $(34,150) outflow O E. $(35,375) outflow OF. $(37,025) outflow Consider the above information and consider that Carson Company has 2 types of long lived assets (i) vehicles and (ii) equipment. During the twelve months ended 12/31/2020 Carson had the following transactions that impacted the company's long lived assets. 1. The company recorded depreciation for the current year using the methods discussed in class. 2. During 2020, the company paid cash to purchase a new copy machine and began using this new item of equipment on July 1, 2020. Carson made no equipment disposals. 3. During 2020, the company made no new vehicle purchases but disposed of 1 older car used by the sales team. This was the only long-lived asset disposal. True or False: even though these long-lived assets are used in the day-to-day business operations, the cash paid for the new copy machine and the cash collected as sales proceeds from the sale of the old vehicle will be classified on the Statement of Cash Flows as investing activities. O True O False