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Blundell Biotech. Blundell Blotech is a US-based biotechnology company with operations and earnings in a number of foreign countries. The company's profits by subsidiary, in

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Blundell Biotech. Blundell Blotech is a US-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 US dollars in 2013 and 2014? b. If the same exchange rates were used for both years which 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 Blundelf's growth in eamings between local currency earnings and foreign exchange rate impacts on a consolidated basis? a. What was Blundel Biotech's consolidated profits in US dollars in 2013 and 2014? Consolidated profts or earnings is found by consolidating the converted prolts in each foreign currency to US dollars for that period (This is simplified Actuat accounting practices would require the additional netting of any intra-company transactions resulting to eliminate any double-counting of protits) Calculate the consolidated profits in U.S. dotars in 2013 and 2014 bolow Dzand to two decimal places) Net Income Japanese (USD) Subsidiary (2013) (2014) Change (Click on the icon to import the table into a spreadsheet.) (8) Japanese Subsidiary JPY 1,500 1,460 British Subsidiary GBP 100.00 106.40 Net Income 2013 2014 European Subsidiary EUR 204.00 20800 Russian Subsidiary RUB 124.00 116.00 Chinese Subsidiary CNY 168.00 19400 United States Subsidiary USD 360.00 382.00 (b) Exchange Rate 2013 2014 JPY 1 USD 97.57 105 88 USD 1 GBP 1.5646 1.6473 USD 1 EUR 13286 1.3288 CNY = 1 USD 6.1484 6.1612 RUB - 1 USD 31.86 38.62 USD 1 1

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