Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions On August 1, Rantoul Stores Inc. is considering leasing a bulding and purchasing the necessary equipment to operato a retail store, Alternatively, the company could use the funds to invest in $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: $158,000 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 revenues-yours 9-16 16 years $12,800 $62,095 $86,800 $74,300 Required: 1. Prepare a differential analysis as of August 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 these 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 () wW automatically appear it required. 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? 3. W the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years? Instructions Labels and Amount Descriptions Differential Analysis Final Questions Differential Analysis 1. Prepare a differential analysis as of August 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 minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. Differential Analysis Operate Retail Store (Alternative 1) or Invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in U.S. Differential Store Treasury Bonds Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Instructions Labels and Amount Descriptions Differential Analysis Final Questions Differential Analysis Differential Analysis Operate Retail Store (Alternative 1) or Invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in US. Differential Store Treasury Bands Effect on Income (Alternative 1) (Alternative 2) (Alternative 1) 1 2 3 Revenues I 4 Costs: 5 Costs to operate store 6 Cost of equipment less residual value 7 Income (loss) JUL 202 And hunchasing on Aug Congo Instructions Labels and Amount Descriptions Differential Analysis Final Contine Differential Analysis Differential Analysis Operate Retail Store (Alternative 1) or invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in US Differential Store Treasury Bands Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) 1 3 Revenues 4 Costs: 5 Costs to operate store 6 Cost of equipment less residual value 7 Income (loss) Instructions Labels and Amount Descriptions Differential Analysis Final Questions Differential Analysis Differential Analysis Operate Retail Store (Alternative 1) or invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in U.S. Differential Store Treasury Bonds Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) 1 2 3 Revenues 4 Costs: 5 Costs to operate store Cost of equipment less residual value T Income (loss) Lina Amount Descriptions Differential Analysis Final Questions Differential Analysis Differential Analysis Operate Retail Store (Alternative 1) or Invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in US Differential Store Treasury Bonds Elfect on income (Alternative 1) (Alternative 2) (Alternative 2) 1 2 3 Revenues > 4 Costs: s Costs to operate store 6 Cost of equipment less residual value 7 Income (loss) Fri Instructor