1. Annual Report Boeing By Jose Flores

2. Executive Summary  The Boeing Company is the world's largest aerospace company. The leader in commercial aircraft, military aircraft and missiles, and space markets, Boeing employs close to 167,000 people and serves customers in 145 nations. The company has headquarters in Chicago, Ill., and is the largest exporter in the United States, with revenues of more than $58 billion in 2001.  http://www.boeing.com/companyoffices/financial/fi nreports/annual/04annualreport/BOEING_04AR.p df#search='the%20boeing%20company%202005 %20annual%20report' http://www.boeing.com/companyoffices/financial/fi nreports/annual/04annualreport/BOEING_04AR.p df#search='the%20boeing%20company%202005 %20annual%20report http://www.boeing.com/companyoffices/financial/fi nreports/annual/04annualreport/BOEING_04AR.p df#search='the%20boeing%20company%202005 %20annual%20report

3. Part A. Introduction  Name of chief executive officer: Philip Condit Boeing Chairman and CEO  Location of home office: 100 North Riverside Plaza Chicago, IL 60606-1599 USA.  Phone: 312-544-2000  Ending date of latest fiscal year: December 31  Description of principal products or services that the company provides: Operates as an aerospace firm in six principal segments: Commercial Airplanes; Aircraft and Weapon Systems, Network Systems, Support Systems and Launch and Orbital Systems, collectively Integrated Defense Systems and Boeing Capital Corporation.  Description of principal products or services that the company provides: Operates as an aerospace firm in six principal segments: Commercial Airplanes; Aircraft and Weapon Systems, Network Systems, Support Systems and Launch and Orbital Systems, collectively Integrated Defense Systems and Boeing Capital Corporation.  Main geographic area of activity: United States, Asia other than china, Oceania, China, Europe, Africa, Canada, Latin America, Caribbean and other.

4. Part A. Audit Report  Name of the company’s independent auditors: Deloitte & Touche LLP  What did the auditors say about the company? After reviewing the faineances the auditor concluded with no objections. They compare their report with other auditor’s reports on Boeing and concluded that the financial statements are free of material misstatement.

5. Part A. Stock Market Information DJIA 10,292.31, +5.21S&P 1,195.90, +4.41NASDAQ 2,090.35, +6.27 LastPrev. CloseDay RangeEPSDivShares Outstanding 67.3067.9366.65 - 67.712.14$1.00839,434,000 Change% Change52 Week RangeVolumeP/EYieldMarket Cap - 0.630.9348.10 - 68.483,562,70030.001.6141,703,088,000

6. Part A. Stock Market Information Chart Option s: 3 month6 month1 year3 year5 year The split-adjusted activity for one share of BA stock bought on October 07, 2005 is:

7. Part A. Stock Market Information  The split-adjusted activity for one share of BA stock bought on October 07, 2005 is:  High $67.71  Low $66.65  Open $67.71  Close $67.30  Volume 3,607,600  Base on the market information and the introduction of a new airplane, I believe that it will be a good idea to buy this company stock.

8. Part B. Industry Situation and Company Plans  The Boeing Company operates in the aerospace industry worldwide. This company is divided in different segments some of these are Commercial Airplanes, Integrated Defense Systems (IDS), Boeing Capital Corporation (BCC), and Other. Because being such a big industry in its field the Boeing Company is growing dramatically as years go. Several new improvements have been made in the industry, one of the resent ones are the launch of the new airbus 350 and 787 Dreamliner. The 787 is a family of three super-efficient airplanes that will provide passengers with a better flying experience, including an improved cabin environment with more room and more conveniences. So, by making the passengers fell more comfortable this will make the Boeing Company able to sell more plains and grow more in their field.  http://www.boeing.com/news/releases/ http://www.boeing.com/news/releases/  http://www.boeing.com/news/flash.html http://www.boeing.com/news/flash.html

9. Part C. Income Statement PERIOD ENDING 31-Dec-0431-Dec-0331-Dec-02 Total Revenue 52,457,000 50,485,000 54,069,000 Gross Profit 7,782,000 6,623,000 8,570,000 Operating Income or Loss 2,266,000 891,000 3,868,000 Net Income 1,872,000 718,000 492,000 All numbers in thousands Multistep Format http://finance.yahoo.com/q/is?s=BA&annual As years pass from 2002 the net income for Boeing Company increased dramatically, as expected for new technology in the market of airplanes. In respect to their operations through the last three years there have been some ups and downs in the company.

10. Part C Balance Sheet PERIOD ENDING 31-Dec-0431-Dec-0331-Dec-02 Total Assets 53,963,000 53,035,000 52,342,000 Total Liabilities 42,677,000 44,896,000 44,646,000 Total Stockholder Equity 11,286,000 8,139,000 7,696,000 Net Tangible Assets $8,383,000 $5,191,000 $3,808,000 http://finance.yahoo.com/q/bs?s=BA&annual Since 2002 assets have increase dramatically in this company. As consequently its liabilities have decrease during the last three years. In the liabilities area were I saw a bigger change during the years was in the Long Term Debt were its decrease was dramatically. And last in its owner’s equity it increase by doubling its Retained Earnings from 2003 to 2004.

11. Part C. Statement of Cash Flow PERIOD ENDING 31-Dec-0431-Dec-0331-Dec-02 Net Income 1,872,000 718,000 492,000 Total Cash Flow From Operating Activities 3,458,000 3,881,000 4,375,000 Total Cash Flows From Investing Activities (1,369,000)(1,060,000)(3,421,000) Total Cash Flows From Financing Activities (3,518,000)(521,000)746,000 Change In Cash and Cash Equivalents ($1,429,000)$2,300,000 $1,700,000

12. Part D. Accounting Policies  With respect to result of operations, related charges have average less than 1% of historical annual revenue. The Boeing Company believes it is not reasonable likely that identifying environmental contingencies will result in additional cost that will have a material adverse on their financial position or to their operation results and cash flow trends.  Summary of significant accounting policies, Standards issued & not yet implemented, 717 program completion, goodwill & acquired intangibles, Earning per share, income tax, accounts receivable, inventories, discontinued operations commercial financial services, customer financing, property, plant, equipment, investments, differed lease income, debt, postretirement plans, share-base compensation, shareholders equity, derivative financial instruments, arrangements with off-balance sheet risk, significant group concentrations of risk, disclosures about fair value of financial instruments, contingencies, segment information, Boeing capital corporation (BCC), statement of cash flow and subsequent events (Unaudited).

13. Part E. Financial Analysis Liquidity Ratios 20042003 Working Capital 112860008139000 Current Ratio 1.261.18

14. Part E. Financial Analysis Profitability Ratios 20042003 Profit margin.52.22 Asset turnover.066.061 Return on assets.034.014 Return on equity.17.14

15. Part E. Financial Analysis Solvency Ratio 20042003 Debt to Equity.378.552

16. Part E. Financial Analysis Market Strength Ratios 2005 Price earning per share67.987 Forward annual dividend yield1.50% Trailing annual dividend yield1.41%