• Boeing Company faced litigation expenses amounting to $1 billion due to a legal settlement during the year. The company reported the following financial data:
  • Litigation Expenses: $1 billion
  • Operating Revenue: $100 billion
  • Operating Expenses (excluding litigation): $90 billion
  • Net Income: $5 billion

• Requirements:
  1. Calculate Boeing's net income after accounting for litigation expenses.
  2. Prepare an income statement showing the impact of litigation expenses on operating income.
  3. Analyze Boeing's operating profit margin before and after the litigation expenses.
  4. Discuss the disclosure requirements for significant legal settlements in Boeing's financial statements.
  5. Evaluate Boeing's earnings per share (EPS) and the dilutive effect of the litigation expenses.