• Boeing Company incurred $3 billion in litigation expenses related to aircraft safety issues. The company provided the following financial data:
  • Litigation Expenses: $3 billion
  • Total Revenue: $79 billion
  • Operating Expenses: $68 billion
  • Net Income: $1 billion

• Requirements:
  1. Calculate Boeing’s net income after accounting for the litigation expenses.
  2. Prepare an income statement showing the impact of the litigation expenses on net 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 quality control measures and their impact on future litigation risks.