Operating cash flows Strong Tool Company has been considering purchasing a new latha tomplace a fully deprecated lathe that would otherwise ist 5 more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,100 In Year 1: $3 360 In Year 2 $1,995 In Year 3 $1,260 in both Year 4 and Year 5, and 5525 in Year 6. The firmesirates the revenues and expenses lexdudirg depreciation and interest for the new and the old Isthes to be as shown in the following table. The firm is subject to a 40% lax rate on ordinary income a. Calculate the operating cash rows associated with each lathe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating Coah Nows resulting from the proposed the replacement c. Depict on a timeline the incremental operating cash flows calculated in part b. a. Calculate the operating cash flows associated with the new lathe below: (Round to the nearest dollar.) . X S $ Data table $ Year Revenue Expenses (excluding depreciation and interest Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net pronta Operating cash flows $ $ $ $ $ 5 s (Click on the icon located on the top-right corner of the data table below In order to copy its contents into a spreadsheet. New Lathe Old Lathe D Expenses Expenses (excluding depreciation (excluding depreciation Year Revenue and interest) Revenue and interest) 1 S41,500 $31,100 $ $36,100 $ $24,500 2 42,500 31.100 36,100 24,500 3 43,500 31100 36,100 24,500 4 44,500 31.100 36.100 24.500 5 45,500 31.100 36,100 24,500 Print Done