Consolidating an International Subsidiary, Year of Acquisition On February 1, 2022, Pathway Inc., a U.S. company, acquired all of the outstanding shares of Superbarn Supermarkets, an Australian chain, for A$150 million in cash. Superbarns assets and liabilities were reported at amounts approximating fair value, but it had previously unrecorded intangible assets (5-year life, straight-line) valued at A$10 million. Superbarns functional currency is the Australian dollar (A$). Pathway uses the complete equity method to record its investment in Superbarn on its own books. The January 31, 2023 trial balances of the two companies are below. (in thousands) Pathway Dr (Cr) Superbarn Dr (Cr) Cash and receivables $ 15,000 A$ 5,000 Inventories 90,000 30,000 Plant and equipment, net 776,500 355,000 Investment in Superbarn 110,600 -- Liabilities (874,000) (345,000) Capital stock (25,000) (10,000) Retained earnings, February 1 (85,000) (20,000) Dividends 2,000 -- Sales revenue (1,500,000) (500,000) Equity in net income of Superbarn (6,000) -- Equity in other comprehensive loss of Superbarn 10,900 -- Cost of goods sold 1,000,000 400,000 Operating expenses 485,000 85,000 $ 0 A$ 0 Exchange rates: February 1, 2022 $0.77/A$ Average for fiscal 2023 0.75/A$ January 31, 2023 0.70/A$ Goodwill arising from the acquisition of Superbarn was impaired by A$5 million in fiscal 2023. a. Prepare a working paper to consolidate the trial balances of Pathway and Superbarn for fiscal 2023. 1. Translate Superbarn's January 31, 2023 trial balance. Use negative signs with Cr (credit balance) answers. Trial Balance (in thousands) A$ Dr(Cr) $/A$ $ Dr(Cr) Cash and receivables A$ 5,000 Answer Answer Inventories 30,000 Answer Answer Property and equipment, net 355,000 Answer Answer Liabilities (345,000) Answer Answer Capital stock (10,000) Answer Answer Retained earnings, February 1 (20,000) Answer Answer Sales revenue (500,000) Answer Answer Cost of goods sold 400,000 Answer Answer Operating expenses 85,000 Answer Answer Translation gain or loss (below) Answer A$ 0 Answer Do not use negative signs with any of your answers. Using the drop-down menu, select the appropriate answer to indicate a translation gain or translation loss