Fin/419 - Week 2 - Financial Outcomes Lt Paper

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  • Topic: Boeing, Boeing Commercial Airplanes, Boeing 747
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Boeing Financial Outcomes
LT Team C: Mandy Turner, Kyle Smith, Kim Brown, Gary Kelly
FIN/419
June 27, 2011
Sarah Newton

Boeing Financial Outcomes
In this paper Team C has selected to report financial outcomes for the Boeing Company. We will compare and contrast three potential financial outcomes that we envision for the initiative in using the most recent annual report and other financial statements. We will evaluate our discoveries to determine the most likely outcome. We will also include calculations that support our analysis of various financial outcomes and discuss the financial effect on Boeing. Boeing is the largest global aircraft producer that started in the mid-1916 and continues to grow by producing the biggest aircrafts and improving them with today’s technologies. First making people more aware of what Boeing is and what it stands for brings more awareness of how successful the company is. In obtaining the attention of the people, we can go on from there. Boeing is a global company made of different business units, which is why Boeing is so successful. In offering different products, it opens doors for more adverse business. The different business units are Boeing commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS) Engineering, Operations & Technology, Boeing Capital, and Boeing Shared Services Group. We the members of Team C think that the financial situation of Boeing could be quite successful. Many things happen regularly that bring in revenue, from all the different business units Boeing operates. If more people are informed they may feel the need to join in. Making money is not as easy as some may think so a game plan helps guild any company to success. The plan that this team sees is to make people understand the need and wants of the Boeing Company and if they agree they will be more willing to join in or even purchase from the company. We envision a great financial outcome from our initiative because we are making people more aware of what they were missing out on. The Boeing Company has been looked over many times. It should not have because you can learn some great things if you just pay attention to the information that are available to you. For example, Boeing is a company that employs about 164,495 people from different states all over. We are sure that if the company was not a great one there would not be the need for that many jobs. Boeing is also not something new but continues to bring new things to the attention of many. Boeing is also not new to the industry but continues to bring new things to the attention of many. Boeing started in 1916 but under the name Pacific Aero Products Company, and in 1917 it was renamed to the Boeing Airplane Company and still running strong today. We believe that this company will bring in billions in the next few years just as it has been doing for some time now. On February 24, 2011, Boeing was awarded the contract from the United States Air Force “to design, develop, manufacture and deliver four next generation aerial refueling tankers. The KC-46A Tanker will be a derivative of its 767 commercial aircraft” (Boeing, 2011, p. 28). This opportunity will additionally assist in rebuilding the economy with an estimated 50,000 United States jobs. The contract has the weighted potential of an initial $4.4 billion investment and potential revenue of $30 billion over the next six years. However, the figures can change if all design, development, and manufacturing estimates do not incur any changed to the estimated costs. “This initial contract is a fixed-price incentive firm contract, valued at $4.4 billion and involves highly complex designs. Changes to our estimated cost to perform the work could result in a material charge” (Boeing, 2011, p. 28). When taking into consideration that the price of the 767 commercial aircraft ranges from $144.1 million to $180.6 million (Boeing, 2011, prices) that is without the equipment and...
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