Waterway Company is considering the purchase of a new machine. The invoice price of the machine is $137,000, frelght charges are estimated to be $4,000, and installation costs are expected to be $6,000. The salvage value of the new equipment b expected to be zero after a useful isfe of 5 years. The company coutd retain the existing equipment and use it for an additionats years if it doesint purchase the new machine. At that time, the equipment's salvage value would be zero. If Waterway purchases the new machine now, it would have to scrap the existing machine. Waterway's accountant, Karen White, has accumulated the following data for anncal sales and expenses, with and without the new machine: 1. Without the new machine, Waterway can sell 12,000 units of product annually at a per-init seling price of $100. If it purchases the new machine, the number of units produced and sold would increase by 10%, and the selling price would remain the same. 2. The new machine is faster than the old machine, and it is more efficient in its ise of materials, With the old machirns, the gross profit rate is 25% of sales, whereas the rate will be 30% of sales with the new machine. 3. Annual selling expenses are $176,000 with the current machine. Because the new machine would produce a greater number of units to be sold, annual selling expenses are expected to increase by 10% if it is purchased. 4. Annual administrative expenses are expected to be $98,000 with the old machine, and $111,000 with the new inachine. 5. The current book value of the existing machine is $35.000. Waterway uses straight-line depreciation. Prepare an incremental analysis for the five years that shows whether Waterway should retain the existing machine or buy the new one. (Ignore income tax effects) (if an amount reduces the net income then enter with a negotive sign preceding the number or parenthesis, es. 15,000,(15,000). Enter alf other amounts as posithe and subtract where necessary. Do not leave any answer field biank Enter Ofor amounts.) Keep Old Machine Sales Less costs: Cost of goods sold \$ Selling Administrative Operating income Sales Less costs: Cost of goods sold $ Administrative Operating income Operating income Cost of the new machine: Totals