Blundell Biotech. Blundell Biotech is aU.S.-based biotechnology company with operations and earnings in a number of foreign countries. Thecompany's profits bysubsidiary, in local currency(in millions), are shown in the table LOADING...

for 2013 and 2014.

a. What was BlundellBiotech's consolidated profits in U.S. dollars in 2013 and2014?

b. If the same exchange rates were used for bothyears, 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 separateBlundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidatedbasis?

a. What was BlundellBiotech's consolidated profits in U.S. dollars in 2013 and2014?

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 anyintra-company transactions resulting to eliminate anydouble-counting ofprofits.)

Calculate the consolidated profits in U.S. dollars in 2013 and 2014below:(Round to two decimalplaces)

(a)

Japanese

Subsidiary British

Subsidiary European

Subsidiary Chinese

Subsidiary Russian

Subsidiary United States

Subsidiary

Net Income JPY GBP EUR CNY RUB USD

2013 1,491 97.22 196.83 165.41 126.82 361.08

2014 1,466 105.71 216.74 193.89 111.86 375.22

(b)

Exchange Rate JPY = 1 USD USD = 1 GBP USD = 1 EUR CNY = 1 USD RUB = 1 USD USD

2013 97.56 1.5581 1.3403 6.0733 31.77 1

2014 105.84 1.6758 1.4131 6.2305 38.65 1