The following are three comparative financial statements for lululemon athletica
ID: 2584900 • Letter: T
Question
The following are three comparative financial statements for lululemon athletica inc., as shown in its 2014 Form 10-K. The 2014 fiscal year ends on February 1, 2015, and the 2013 fiscal year ends on February 2, 2014.
lululemon athletica inc.
Consolidated Balance Sheets
(Amounts in thousands, except per share amounts)
1
February 1, 2015
February 2, 2014
2
ASSETS
3
Current assets
4
Cash and cash equivalents
$664,479.00
$698,649.00
5
Accounts receivable
13,746.00
11,903.00
6
Inventories
208,116.00
188,790.00
7
Prepaid expenses and other current assets
64,671.00
46,197.00
8
951,012.00
945,539.00
9
Property and equipment, net
296,008.00
255,603.00
10
Goodwill and intangible assets, net
26,163.00
28,201.00
11
Deferred income tax asset
16,018.00
18,300.00
12
Other non-current assets
7,012.00
4,745.00
13
$1,296,213.00
$1,252,388.00
14
LIABILITIES AND STOCKHOLDERS’ EQUITY
15
Current liabilities
16
Accounts payable
$9,339.00
$12,647.00
17
Accrued inventory liabilities
22,296.00
15,415.00
18
Accrued compensation and related expenses
29,932.00
19,445.00
19
Income taxes payable
20,073.00
769.00
20
Unredeemed gift card liability
46,252.00
38,343.00
21
Other accrued liabilities
31,989.00
29,595.00
22
159,881.00
116,214.00
23
Deferred income tax liability
3,633.00
3,977.00
24
Other non-current liabilities
43,131.00
35,515.00
25
206,645.00
155,706.00
26
Stockholders’ equity
27
Undesignated preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding
28
Exchangeable stock, no par value, 60,000 shares authorized, issued and outstanding 9,833 and 29,955
29
Special voting stock, $0.000005 par value, 60,000 shares authorized, issued and outstanding 9,833 and 29,955
30
Common stock, $0.005 par value, 400,000 shares authorized, issued and outstanding 132,112 and 115,342
661.00
577.00
31
Additional paid-in capital
241,695.00
240,351.00
32
Retained earnings
1,020,619.00
923,822.00
33
Accumulated other comprehensive loss
(173,407.00)
(68,068.00)
34
1,089,568.00
1,096,682.00
35
$1,296,213.00
$1,252,388.00
lululemon athletica inc.
Consolidated Statements of Operations and Comprehensive Income
(Amounts in thousands, except per share amounts) Fiscal Year Ended
1
February 1, 2015
February 2, 2014
February 3, 2013
2
Net revenue
$1,797,213.00
$1,591,188.00
$1,370,358.00
3
Cost of goods sold
883,033.00
751,112.00
607,532.00
4
Gross profit
914,180.00
840,076.00
762,826.00
5
Selling, general and administrative expenses
538,147.00
448,718.00
386,387.00
6
Income from operations
376,033.00
391,358.00
376,439.00
7
Other income (expense), net
7,102.00
5,768.00
4,957.00
8
Income before provision for income taxes
383,135.00
397,126.00
381,396.00
9
Provision for income taxes
144,102.00
117,579.00
109,965.00
10
Net income
239,033.00
279,547.00
271,431.00
11
Net income attributable to non-controlling interest
0.00
0.00
875.00
12
Net income attributable to lululemon athletica inc.
$239,033.00
$279,547.00
$270,556.00
13
Other comprehensive (loss) income:
14
Foreign currency translation adjustment
(105,339.00)
(89,158.00)
(459.00)
15
Comprehensive income
$133,694.00
$190,389.00
$270,097.00
16
Basic earnings per share
$1.66
$1.93
$1.88
17
Diluted earnings per share
$1.66
$1.91
$1.85
18
Basic weighted-average number of shares outstanding
143,935.00
144,913.00
144,000.00
19
Diluted weighted-average number of shares outstanding
144,298.00
146,043.00
145,806.00
lululemon athletica inc.
Consolidated Statements of Cash Flows
(Amounts in thousands) Fiscal Year Ended
1
February 1, 2015
February 2, 2014
February 3, 2013
2
Cash flows from operating activities
3
Net income
$239,033.00
$279,547.00
$271,431.00
4
Items not affecting cash
5
Depreciation and amortization
58,364.00
49,068.00
43,000.00
6
Stock-based compensation
8,269.00
10,087.00
15,637.00
7
Derecognition of unredeemed gift card liability
(1,468.00)
(4,654.00)
(1,351.00)
8
Deferred income taxes
2,087.00
820.00
(6,445.00)
9
Excess tax benefits from stock-based compensation
(413.00)
(6,457.00)
(9,901.00)
10
Other, including net changes in other non-cash balances
11
Prepaid tax installments
(15,234.00)
3,067.00
(7,812.00)
12
Other prepaid expenses and other current assets
(8,813.00)
(14,408.00)
(10,492.00)
13
Inventories
(26,806.00)
(38,507.00)
(51,222.00)
14
Accounts payable
(2,198.00)
11,627.00
(13,481.00)
15
Accrued inventory liabilities
8,276.00
6,985.00
(1,785.00)
16
Other accrued liabilities
3,271.00
7,837.00
1,777.00
17
Sales tax collected
517.00
161.00
(4,232.00)
18
Income taxes payable
19,304.00
(35,075.00)
30,951.00
19
Accrued compensation and related expenses
11,561.00
(6,282.00)
4,695.00
20
Deferred gift card revenue
11,326.00
9,306.00
13,711.00
21
Other non-cash balances
7,373.00
5,217.00
5,632.00
22
Net cash provided by operating activities
314,449.00
278,339.00
280,113.00
23
Cash flows from investing activities
24
Purchase of property and equipment
(119,733.00)
(106,408.00)
(93,229.00)
25
Net cash used in investing activities
(119,733.00)
(106,408.00)
(93,229.00)
26
Cash flows from financing activities
27
Proceeds from exercise of stock options
2,913.00
8,171.00
11,014.00
28
Excess tax benefits from stock-based compensation
413.00
6,457.00
9,901.00
29
Registration fees associated with shelf registration statement
0.00
0.00
(393.00)
30
Purchase of non-controlling interest
0.00
0.00
(26,013.00)
31
Taxes paid related to net share settlement of equity awards
(4,972.00)
(5,721.00)
0.00
32
Repurchase of common stock
(147,431.00)
0.00
0.00
33
Net cash (used in) provided by financing activities
(149,077.00)
8,907.00
(5,491.00)
34
Effect of exchange rate changes on cash
(79,809.00)
(72,368.00)
(651.00)
35
(Decrease) increase in cash and cash equivalents
(34,170.00)
108,470.00
180,742.00
36
Cash and cash equivalents, beginning of period
$698,649.00
$590,179.00
$409,437.00
37
Cash and cash equivalents, end of period
$664,479.00
$698,649.00
$590,179.00
Required:
lululemon athletica inc.
Consolidated Balance Sheets
(Amounts in thousands, except per share amounts)
Explanation / Answer
2015
Current Ratio=Current Assets/Current Liabilities
= 951012/159881=5.94
2014
Current Ratio= Current Assets/Current Liabilities
=1252388/155706=8.04
B.Quick ratio 2015=quick Assets/Current Liabilities
=664479+13746/159881=4.24
Quick Ratio2014=quick Assets/Current Liabilities
=698649+11903/155706=4.56
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