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answer part B please Blundell Biotech. Blundell Biotech is a U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The company's
answer part B please
Blundell Biotech. Blundell Biotech is a U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The company's profits by subsidiary, in local currency (in Millions) along with the average exchange rate for each year, by currency pairs, are shown in the table for 2013 and 2014. Use these data to answer the following questions. a. What was Blundell Biotech's consolidated profits in U.S. dollars in 2013 and 2014? b. If the same exchange rates were used for both yearswhich is often called a "constant currency basis"-- what was the change in corporate earnings on a constant currency basis? c. Using the results of the constant currency analysis in part (b), is it possible to separate Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated basis? a. What was Blundell Biotech's consolidated profits in U.S. dollars in 2013 and 2014? Consolidated profits or earnings is found by consolidating the converted profits in each foreign currency to U.S. dollars for that period. (This is simplified. Actual accounting practices would require the additional netting of any intra-company transactions resulting to eliminate any double-counting of profits.) Calculate the consolidated profits in U.S. dollars in 2013 and 2014 below: (Round to two decimal places) U.S. Net Income Japanese British European Chinese Russian Consolidated (USD) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Earnings (2013) 15.40 134.63 275,47 26.78 4,10 352.27 808.65 (2014) 13.78 182.80 282.07 31.99 2.77 386.84 900.25 Change (%) 11.33 b. If the same exchange rates were used for both years, what was the change in corporate earnings on a "constant currency basis? Calculate the earnings from individual subsidiaries and consolidation below: (Round to two decimal places.) Net Income Consolidated Japanese British European Chinese Subsidiary Subsidiary Subsidiary Subsidiary Russian U.S. Subsidiary Subsidiary Subsidiary (USD) (2014) Change (%) (Click on the icon to import the table into a spreadsheet.) (a) Japanese British Subsidiary Subsidiary Net Income JPY GBP 2013 1,502 90.73 2014 1,458 107.31 European Subsidiary EUR 196.57 203.16 Chinese Subsidiary CNY 163.31 198.44 Russ Subsic RUI 130.4 106. (b) Exchange Rate 2013 2014 JPY = 1 USD 97.52 105.8 USD = 1 GBP 1.4838 1.7035 USD = 1 EUR 1.4014 1.3884 CNY = 1 USD 6.0979 6.2031 RUB = 1 31.9 38.5 Blundell Biotech. Blundell Biotech is a U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The company's profits by subsidiary, in local currency (in Millions) along with the average exchange rate for each year, by currency pairs, are shown in the table for 2013 and 2014. Use these data to answer the following questions. a. What was Blundell Biotech's consolidated profits in U.S. dollars in 2013 and 2014? b. If the same exchange rates were used for both yearswhich is often called a "constant currency basis"-- what was the change in corporate earnings on a constant currency basis? c. Using the results of the constant currency analysis in part (b), is it possible to separate Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated basis? a. What was Blundell Biotech's consolidated profits in U.S. dollars in 2013 and 2014? Consolidated profits or earnings is found by consolidating the converted profits in each foreign currency to U.S. dollars for that period. (This is simplified. Actual accounting practices would require the additional netting of any intra-company transactions resulting to eliminate any double-counting of profits.) Calculate the consolidated profits in U.S. dollars in 2013 and 2014 below: (Round to two decimal places) U.S. Net Income Japanese British European Chinese Russian Consolidated (USD) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Earnings (2013) 15.40 134.63 275,47 26.78 4,10 352.27 808.65 (2014) 13.78 182.80 282.07 31.99 2.77 386.84 900.25 Change (%) 11.33 b. If the same exchange rates were used for both years, what was the change in corporate earnings on a "constant currency basis? Calculate the earnings from individual subsidiaries and consolidation below: (Round to two decimal places.) Net Income Consolidated Japanese British European Chinese Subsidiary Subsidiary Subsidiary Subsidiary Russian U.S. Subsidiary Subsidiary Subsidiary (USD) (2014) Change (%) (Click on the icon to import the table into a spreadsheet.) (a) Japanese British Subsidiary Subsidiary Net Income JPY GBP 2013 1,502 90.73 2014 1,458 107.31 European Subsidiary EUR 196.57 203.16 Chinese Subsidiary CNY 163.31 198.44 Russ Subsic RUI 130.4 106. (b) Exchange Rate 2013 2014 JPY = 1 USD 97.52 105.8 USD = 1 GBP 1.4838 1.7035 USD = 1 EUR 1.4014 1.3884 CNY = 1 USD 6.0979 6.2031 RUB = 1 31.9 38.5 Step by Step Solution
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