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)
	Japanese Subsidiary	British Subsidiary	European Subsidiary	Chinese Subsidiary	Russian Subsidiary	United States Subsidiary
Net Income	JPY	GBP	EUR	CNY	RUB	USD
2013	1499	102.22	211.11	172.88	130.15	360.03
2014	1454	105.68	211.73	202.58	115.81	383.06
(b)
Exchange Rate	JPY = 1 USD	USD = 1 GBP	USD = 1 EUR	CNY = 1 USD	RUB = 1 USD	USD
2013	97.66	1.525	1.3364	6.1446	31.83	1
2014	105.89	1.6438	1.3502	6.2418	38.62	1

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)

Net Income	Japanese
(USD)	Subsidiary
(2013)
(2014)
Change (%)

British

Subsidiary

European

Subsidiary

Chinese

Subsidiary

Russian

Subsidiary

U.S.

Subsidiary

Consolidated

Earnings

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	Japanese
(USD)	Subsidiary
(2014)
Change (%)

British

Subsidiary

European

Subsidiary

Chinese

Subsidiary

Russian

Subsidiary

U.S.

Subsidiary

Consolidated

Subsidiary

(Select the best choice below.)

A. On a constant currency basis, all subsidiaries showed growth in profits except for the European and Russian subsidiaries. Fortunately 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 Japanese and Chinese subsidiaries. Fortunately 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 Chinese and Russian subsidiaries. Fortunately 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 Russian subsidiaries. Fortunately 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.)Enter any number in the edit fields and then continue to the next question.