• Visa Inc. faced significant litigation expenses totaling $800 million during the year. The company reported the following financial data:
  • Litigation Expenses: $800 million
  • Total Revenue: $21 billion
  • Operating Expenses: $9 billion
  • Net Income: $12 billion

• Requirements:
  1. Calculate Visa’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 the strategic implications of the litigation expenses on Visa’s financial performance.
  4. Discuss the disclosure requirements for significant legal settlements in Visa’s financial statements.
  5. Evaluate Visa’s liquidity position and ability to absorb unexpected expenses.