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 for 2013 and 2014. Net Income 2013 2014 Japanese Subsidiary JPY 1,500 JPY 1,460 Britih Subsidiary GBP 100.00 GBP 106.40 European Subsidiary EUR 204.00 EUR 208.00 Chinese Subsidiary CNY 168.00 CNY 194.00 Russian Subsidiary RUB 124.00 RUB 116.00 United States Subsidiary USD 360.00 USD 382.00 The average exchange rate for each year, by currency pairs, was the following. Use this data to answer the following questions. Exchange Rate 2013 2014 JPY = 1 USD 97.57 105.88 USD = 1 GBP 1.5646 1.6473 USD = 1 EUR 1.3286 1.3288 CNY=1 USD 6.1484 6.1612 RUB=1 USD 31.86 38.62 USD 1.0000 1.0000 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 years, 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. 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.) Japanese Subsidiary Britih Subsidiary European Subsidiary Chinese Subsidiary Russian Subsidiary United States Subsidiary Consolidated Earnings Net Income (USD) b. If the exchange rates for 2013 are used for both years, earnings from individual subsidiaries and consolidation appear as follows. Japanese Subsidiary Britih Subsidiary European Subsidiary Chinese Subsidiary Russian Subsidiary United States Subsidiary Consolidated Earnings Net Income (USD)