• IBM Corporation reported a $2 billion goodwill impairment due to underperforming acquisitions. The company provided the following financial figures:
  • Goodwill Impairment: $2 billion
  • Total Revenue: $100 billion
  • Operating Expenses: $80 billion
  • Net Income: $15 billion

• Requirements:
  1. Calculate IBM's net income after accounting for the goodwill impairment.
  2. Prepare an income statement showing the impact of goodwill impairment on operating income.
  3. Analyze IBM's operating profit margin before and after the goodwill impairment.
  4. Discuss the disclosure requirements for goodwill impairments in IBM's financial statements.
  5. Evaluate the impact of the goodwill impairment on IBM's future investment strategies.