***I just want to verify that all of my answers are correct before submitting***

Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated depreciation is $24,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $180,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:

Required:
a.	Prepare a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). Prepare the analysis over the useful life of the new machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
b.	Based only on the data presented, should the proposal be accepted?
c.	What are some of the other factors that should be considered before a final decision is made?

a. Prepare a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). Prepare the analysis over the useful life of the new machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

Present 1 Operations $205,000.00 Proposed Operations $205,000.00 2 Sales 3 Direct materials $72,000.00 $72,000.00 4. Direct labor 51,000.00 0.00 5 Power and maintenance 5,000.00 18,000.00 6 Taxes, insurance, etc. 1,500.00 4,000.00 7 Selling and administrative expenses 45,000.00 45,000.00 8 Total expenses $174,500.00 $139,000.00 Labels and Amount Descriptions Labels Cash flows from investing activities Costs Revenues Amount Descriptions Direct labor (5 years) Direct materials (5 years) Gain on sale of investments Income (loss) Loss on sale of investments Power and maintenance (5 years) Purchase price Sales (5 years) Selling and administrative expenses (5 years) Taxes, insurance, etc. (5 years) Total costs Differential Analysis Continue with (Alternative 1) or Replace (Alternative 2) Old Machine May 4 Continue with Replace Old Differential Effect 1 Old Machine Machine on Income 2 (Alternative 1) (Alternative 2) (Alternative 2) 3 Revenues: 4 Sales (5 years) $1,025,000.00 $1,025,000.00 $0.00 5 Costs: 6 Purchase price 0.00 (180,000.00) (18.00) 7 Direct materials (5 years) (360,000.00) (360,000.00) 0.00 8 Direct labor (5 years) (255,000.00) 0.00 255,000.00 9 Power and maintenance (5 years) (25,000.00) (90,000.00) (65,000.00) 10 Taxes, insurance, etc. (5 years) (7,500.00) (20,000.00) (12,500.00) 11 Selling and administrative expenses (5 years) (225,000.00) (225,000.00) 0.00 12 Income (loss) $152,500.00 $150,000.00 $(2,500.00) b. Based only on the data presented, should the proposal be accepted? O Should be accepted Should not be accepted c. What are some of the other factors that should be considered before a final decision is made? Check all that apply. Differences in product quality between the two alternatives v Opportunity costs associated with alternative uses of the $180,000 purchase price Book value of the original machine Cost of supplies and inventory purchased in the past Differences in capacity between the two alternatives