Company X is a U.S.-based IT 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 2019 and 2020.

Net Income Japanese Subsidiary Britih Subsidiary

2019 JPY 200 GBP 100.00

2020 JPY 1,480 GBP 108.40

The average exchange rate for each year, by currency pairs, is the following.

Exchange Rate JPY = 1 USD USD = 1 GBP

2019 97.57 1.5646

2020 90.88 1.6473

Use the above data, Students answer the following questions.

1. What is Company X's consolidated profits in U.S. dollars in 2019 and 2020?

2. If the same exchange rates are used for both years, what is the change in corporate earnings on a "constant currency" basis?

Using the results of the constant currency analysis in part b, is it possible to separate Company X's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated basis?