Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer A, B and C as listed in the question. (a) (b) begin{tabular}{cccccc} hline Exchange Rate & JPY = 1 USD & USD =1

image text in transcribedimage text in transcribedPlease answer A, B and C as listed in the question.

(a) (b) \begin{tabular}{cccccc} \hline Exchange Rate & JPY = 1 USD & USD =1 GBP & USD = 1 EUR & CNY = 1 USD & RUB = 1 USD \\ \hline 2013 & 97.65 & 1.5939 & 1.299 & 6.233 \\ 2014 & 105.79 & 1.7409 & 1.261 & 6.1569 \end{tabular} 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 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 Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated basis? 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

External Auditing Tutorial

Authors: Jo Osborne, John Taylor

1st Edition

9781909173965, 1909173967

More Books

Students also viewed these Accounting questions

Question

How can the Internet be helpful in a job search? (Objective 2)

Answered: 1 week ago