How would you expect this situation to affect the assessment of eastern’s financial condition and performance? although nonquantitative factors may be relevant to a company’s financial evaluation in general terms, the details of this specific situation are not relevant to the firm’s financial condition or performance. lawsuits guarantee free advertising and therefore should be guaranteed to increase the firm’s current and future sales and profits. being small, eastern may lack the financial resources and media-management expertise to successfully defend itself in the lawsuit and the media. this could jeopardize eastern’s current and future sales and profits.