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$),$ are shown in the following table, ${?}^4,$ for $2013$ and $2014.$ The

average exchange rate for each year, by currency pairs, was the following. Use the data to answer the following questions.

a$.$ What were Blundell Biotech's consolidated profits in U$.$S$.$ dollars in $2013$ and $2014?$

b$.$ If the same exchange rates were used for both years$-$what is often called a "constant currency basis"$-$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 were 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$)$

b$.$ If the same exchange rates were used for both years$-$what is often called a "constant currency basis"$-$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.$)$ b$.$ If the same exchange rates were used for both years$-$what is often called a "constant currency basis"$-$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.$)$

$($Select the best choice below.$)$

A$.$ On a constant currency basis, all subsidiaries showed growth in profits except for the Japanese and Russian subsidiaries. Fortune

for Blundell, neither of those subsidiaries is a major contributor to total profits.

B$.$ On a constant currency basis, all subsidiaries showed growth in profits except for the Chinese and Russian subsidiaries. Fortunats

for Blundell, neither of those subsidiaries is a major contributor to total profits.

C$.$ On a constant currency basis, all subsidiaries showed growth in profits except for the European and Russian subsidiaries. Fortuna

for Blundell, neither of those subsidiaries is a major contributor to total profits.

D$.$ On a constant currency basis, all subsidiaries showed growth in profits except for the Japanese and Chinese subsidiaries. Fortune

for Blundell, neither of those subsidiaries is a major contributor to total profits.

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?

The foreign exchange rate change is

$\%.($Round to two decimal places.$)$

$4$: Data Table $,11$:$02$ AM