*****Need answers for excel workbook below******

Problem 6-31A Conflict between short-term and long-term performance cel Frank Moran manages the cutting department of Greene Timber Company. He purchased a tree- cutting machine on January 1, 2018, for $200,000. The machine had an estimated useful life of five years and zero salvage value, and the cost to operate it is $45,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1, 2019, that would allow a 25 percent reduction in operating costs. The new machine would cost $120,000 and have a four-year useful life and zero salvage value. The current market value of the old machine on January 1, 2019, is $100,000, and its book value is $160,000 on that date. Straight-line depreciation is used for both machines. The company expects to generate $112,000 of revenue per year from the use of either machine. CHECK FIGURE a. Relevant costs: $280,000 for keeping the old machine Required a. Recommend whether to replace the old machine on January 1, 2019. Support your answer with appropriate computations b. Prepare income statements for four years (2019 through 2022) assuming that the old machine is retained. c. Prepare income statements for four years (2019 through 2022) assuming that the old machine is replaced. d. Discuss the potential ethical conflicts that could result from the timing of the loss and expense recognition reported in the two income statements. Replace With New Keep Old 5 6 a. Decision Opportunity cost of old machine 8 Purchase price of the new machine 9 Operating Expense 10 Total Avoidable Cost 11 12 13 14 15 16 17 b. 18 19 20 21 Revenue 22 Depreciation expense 23 Operating expense 24 Net income 25 26 GREENE TIMBER COMPANY Income Statements 2019 2020 2021 2022 Total 27 c. 2019 2020 2021 2022 Total 28 29 30 31 32 33 Revenue Depreciation expense Operating expense Loss on disposal Net income (loss)