Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer a,b, and c (Click on the following icon e in order to copy its contents into a spreadsheel.) Blundeil Biotech. Blundell Blotech is

please answer a,b, and c image text in transcribed
image text in transcribed
(Click on the following icon e in order to copy its contents into a spreadsheel.) Blundeil Biotech. Blundell Blotech is a U.S.based biotechnology company with operations and eamings in a number of foreign countries. The company's profit by bubsidiary, In local currency (in milions), are shown in the following table, (78), for 2013 and 2014 . The average exchange rate for each year, by currency pairs, wast the following. Use the data to answer tha following questions. a. What were Blundell Biotech's consolidated profits in U.S. dollars in 2013 and 2014 ? b. If the sarne exchange rates were used for both years-what is oflen called a "constant currency basis" - was the change in corporate eamings on a constar cumency basis? c. Using the fecults of the constant currency analysis in part b, is it posn ble to separate Blundelf's growth in eamings betwoen local currency eamings and foreign exchange rite impacts on a consolidated busis? a. What were Bilundell Blotech's consolidated profta in U. S. dollars in 2013 and 2014 ? Consolidated profits or eaminge in found by consoldating the converted profte in ench foreign currency to U.S. dollars for that period. (This is eimplified. Actual accointing prectices woild require the addibonal noting of any intra-company transactions reoulting to eliminate any double-counting of profite.). Calculate the consolidated profits in U.S. doilare 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

Managerial Accounting

Authors: Carl L. Moore

5th Edition

0538019409, 978-0538019408

More Books

Students also viewed these Accounting questions

Question

Use a three-step process to develop effective business messages.

Answered: 1 week ago