Hello I am hoping to get some help with the following question, thank you!

Murl Plastics Inc. purchased a new machine one year ago at a cost of $63,000. Although the machine operates well, the president of Murl Plastics is wondering if the company should replace it with a new electronic machine that has just come on the market. The new machine would slash annual operating costs by two-thirds, as shown in the comparative data below: Present Machine Proposed New Machine $94,500 Purchase cost new Estimated useful life new Annual operating costs Annual straight-line depreciation Remaining book value Salvage value now Salvage value in five years $63,000 6 years 5 years $44,100 10,500 52,500 10,500 $14,700 18,900 In trying to decide whether to purchase the new machine, the president has prepared the following analysis Book value of the old machine Less: Salvage value $52,500 10,500 Net loss from disposal $42,000 Even though the new machine looks good," said the president, "we can't get rid of that old machine if it means taking a huge loss on it. We'll have to use the old machine for at least a few more years." Sales are expected to be $220,500 per year, and selling and administrative expenses are expected to be $132,300 per year, regardless of which machine is used Required: 1. Prepare a summary income statement covering the next five years, assuming the following: a. The new machine is not purchased. b. The new machine is purchased. (Leave no cells blank - be certain to enter "O" wherever required.) 5 Years Summary Keep Old Machine Buy New Machine Difference Total expenses 2. Compute the net advantage of purchasing the new product using relevant costs of purchasing the new machine