Transfer files/applications to new Mac

New here - and apologize for asking a question that has likely been asked before.

About to buy a new iMac to replace old pre intel Power PC G4 running 10.4, and wondering how to transfer files and applications to the new iMac. I know I can use Migration with a Firewire hookup - but is that just for files, or will it work with applications too? And is an old copy of Excel (mostly using it for Word) going to work on a new iMac anyway?

Thanks to any who can help.

The Migration Assistant will transfer both... but be aware that some of your older apps may not work or may give unexpected results when trying to run them on the new machine. You might want to take stock of what you have and make sure that they're compatible with Snow Leopard.

Buying new from where? Apple will transfer files for free if you buy from one of their stores.

Thanks guys.

Will probably buy online since it is easier and a little cheaper. And probably time to get a new version of Excel anyway.