Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $108,900 Annual depreciation (straight-line) 10,890 Annual manufacturing costs, excluding depreciation 38,700 Annual nonmanufacturing operating expenses 11,600 Annual revenue 95,500 Current estimated selling price of the machine 35,200 New Machine Cost of machine, six-year life $139,200 Annual depreciation (straight-line) 23,200 Annual manufacturing costs, excluding depreciation 17,600 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.

Required: 1. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Flint Tooling Company Proposal to Replace Machine Differential Analysis Report Annual manufacturing costs associated with old machine $Annual manufacturing costs associated with old machine Annual manufacturing costs associated with new machine Annual manufacturing costs associated with new machine Annual reduction in manufacturing costs $Annual reduction in manufacturing costs Number of years applicable xfill in the blank 3e0302ff303af9e_7 Cost reduction attributable to difference in manufacturing costs $Cost reduction attributable to difference in manufacturing costs Proceeds from sale of old machine Proceeds from sale of old machine $fill in the blank 3e0302ff303af9e_12 Cost of new machine Cost of new machine Net income anticipated from replacement, six-year total $Net income anticipated from replacement, six-year total