On July 1, Matrix Stores Inc. is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the company could use the funds to invest in $149,300 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: Line Item Description Amount Cost of store equipment $149,300 Life of store equipment 16 years Estimated residual value of equipment $17,700 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,200 Yearly expected revenuesyears 1-8 74,500 Yearly expected revenuesyears 9-16 69,400 Required: Question Content Area 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Line Item Description Operate Warehouse (Alternative 1) Invest in Bonds (Alternative 2) Differential Effects (Alternative 2) Revenues $Revenues $Revenues $Revenues Costs: Costs to operate warehouse Costs to operate warehouse Costs to operate warehouse Costs to operate warehouse Cost of equipment less residual value Cost of equipment less residual value Cost of equipment less residual value Cost of equipment less residual value Profit (Loss) $Profit (Loss) $Profit (Loss) $Profit (Loss) Question Content Area 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? No 3. If the proposal is accepted, what is the total estimated operating income of the warehouse for 16 years? fill in the blank 1 of 1$