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Losgraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant duta associated with the operations of

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Losgraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant duta associated with the operations of the old machine and the now machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year to Annun depreciation (straight line) Annual manufacturing costs, excluding depreciation Antun non- manufacturing operating expenses Annual revenue Current estimated seting price of machine $88.890 8,855 23.450 6.275 74, 120 29,685 5119,580 New Machine Purchase price of machine, six-year fe Annual depreciation (straight-tne) Estimated annual manufacturing costs, excluding depreciation 19.900 6,765 Annual non manufacturing operating expenses and revenue une not expected to be affected by purchase of the new machine, Labels Cash flows from investing activities Costs Revenues Amount Descriptions Annual manufacturing costs (6 yrs.) Gain on sale of investments Loss on sale of investments Purchase price Proceeds from sale of old machine Income (loss) 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Aternative 1) with operations using the now machine (Alternative 2). The analysis show Indicate the total rental income that would result over the seryear period of the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording 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, entor "O" A colon () will automatically appear if required Differential Analysis Continue withAternative 1) or Replace tomative 2) Old Machine April 30 Continue with Replace Old Old Machine Machine Alternativo 13 (Amative Differential Effect an income (Alemati . 1

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