Required 1. Prepare a summary income statement covering the next five years, assuming the following a. The new machine is not purchased b. The new machine is purchased (Leave no cells blank - be certain to enter "O" wherever required.) 5 Years Summary Keep Old Machine Buy New Machine Difference $ 1,155,000 1,155,000 $ Sales Operating costs Depreciation-new machine Selling and administrative expenses Salvage value-old machine Depreciation of the old machine, or loss write-off (231,000) 0 (693,000) (156,000) (330,000) (375,000) (330,000) (693,000) 55,000 (220,000) 0 (108,000) 55,000 (220,000) 0 11,000 Total expenses Net operating income (431,000) 431,000 $1,166,000 1,047,000 $ 2. Compute the net advantage of purchasing the new product using relevant costs Net advantage of purchasing the new machine$ 431,000