Instructions Differential Analysis Shaded cells have feedback. X On October 1, White Way Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest $158,000 of 6% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled: A. Prepare a differential analysis as of October 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). 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"O". A colon () will automatically appear if required. $158.000 16 years Question not attempted. $12.800 Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding depreciation of store equipment Yearly expected revenues-years 1-8 Yearly expected revenuesyears 9-16 $62,095 Score: 0/71 Differential Analysis Operate Retail Store (Alternative 1) or Invest in Bonds (Alternative 2) October 1 $86,800 $74,300 Differential Effect 1 Invest in Bonds Operate Retail Store (Alternative 1) on Income 2 (Alternative 2) (Alternative 2) 3 Required: A. Prepare a differential analysis as of October 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). 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 on the results disclosed by the differential analysis, should the proposal be accepted? C. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years? 4 Label) 5 Labels and mount Descriptions Labels Cash flows from investing activities Costs Amount Descriptions Costs operate store Cost of equipment less residual value Gain on sale of investments Income (Loss) Loss on sale of investments Revenues