Murdock Company has a Spanish subsidiary whose functional currency is the euro. Relevant translated data for the subsidiary appear below.

Required
a. Calculate return on assets for 2014 and 2015 using both translated ($) and euro data.
b. Explain whether translation has distorted the Spanish subsidiary's performance in 2015 compared with 2014. If so, explain how changes in the exchange rate contributed to the distortion.

Operating Income Exchange Rate Date or Annual Period Total Assets January 1, 2014$112,000,000 2014 December 31,2014 2015 December 31, 2015 $1.40/e 1.20/e 1.00/E 0.90/E 1.00/E $12,000,000 95,000,000 10,890,000 95,000000