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)
	February 1, 2015	February 2, 2014
ASSETS
Current assets
Cash and cash equivalents	$664,479.00	$698,649.00
Accounts receivable	13,746.00	11,903.00
Inventories	208,116.00	188,790.00
Prepaid expenses and other current assets	64,671.00	46,197.00
	951,012.00	945,539.00
Property and equipment, net	296,008.00	255,603.00
Goodwill and intangible assets, net	26,163.00	28,201.00
Deferred income tax asset	16,018.00	18,300.00
Other non-current assets	7,012.00	4,745.00
	$1,296,213.00	$1,252,388.00
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Account payable	$9,339.00	$12,647.00
Accured inventory liabilities	22.296.00	15,415.00
Accured compensation and related expenses	29,932.00	19,445.00
Income taxes payable	20,073.00	769.00
Unredeemed gift card liability	46,252.00	38,343.00
Other accrued liabilities	31,989.00	29,595.00
	159,881.00	116,214.00
Deferred income tax liability	3,633.00	3,977.00
Other non-current liabilites	43,131.00	35,515.00
	206,645.00	115,706.00
Stockholders' equity
Undesignated perferred stock, $0.01 par value, 5,000 shares authorizedm none issued and outstanding
Exchangeable stock, no par value, 60,000 shares authorized, issued and outstanding 9,833 and 29,955
Special voting stock, $0.000005 par value, 60,000 shares authorized, issued and outstanding 9,833 and 29,995
Common stock, $0.005 par value, 400,000 shares authorized, issued and outstanding 132,112 and 115,342	661.00	577.00
Additional paid-in capital	241,695.00	240,351.00
Retained earnings	1,020,619.00	923,822.00
Accumulated other comprehensive loss	(173,407.00)	(68,068.00)
	1,089,568.00	1,096,682.00
	$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
	February 1, 2015	February 2, 2014	February 3, 2013
Net revenue	$1,797,213.00	$1,591,188.00	$1,370,358.00
Cost of goods sold	883,033.00	751,112.00	607,532.00
Gross profit	914,180.00	840,076.00	762,826.00
Selling, general and administrative expenses	538,147.00	448,718.00	386,387.00
Income from operations	376,033.00	391,358.00	376,439.00
Other income (expense), net	7,102.00	5,768.00	4,957.00
Income before provision for income taxes	383,135.00	397,126.00	381,396.00
Provision for income taxes	144,102.00	117,579.00	109,965.00
Net income	239,033.00	279,547.00	271,431.00
Net income attributable to non-controlling interest	0.00	0.00	875.00
Net income attributable to lululemon athletica inc.	$239,033.00	$279,547.00	$270,556.00
Other comprehensive (loss) income:
Foreign currency translation adjustment	(105,339.00)	(89,158.00)	(459.00)
Comprehensive income	$133,694.00	$190,389.00	$270,097.00
Basic earnings per share	$1.66	$1.93	$1.88
Diluted earning per share	$1.66	$1.91	$1.85
Basic weighted-average number of shares outstanding	143,935.00	144,913.00	144,000.00
Diluted wrighted-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
	February 1, 2015	February 2, 2014	February 3, 2013
Cash flows from operating activities
Net income	$239,033.00	$279,547.00	$271,431.00
Items not affecting cash
Depreciation and amortization	58,364.00	49,068.00	43,000.00
Stock-based compensation	8,269.00	10,087.00	15,637.00
Derecognition of unredeemed gift card liability	(1,468.00)	(4,654.00)	(1,351.00)
Deferred income taxes	2,087.00	820.00	(6,445.00)
Excess tax benefits from stock-based compensation	(413.00)	(6,457.00)	(9,901.00)
Otherm including net changes in other non-cash balances
Prepaid tax installments	(15,234.00)	3,067.00	(7,812.00)
Other prepaid expenses and other current assets	(8,813.00)	(14,408.00)	(10,492.00)
Inventories	(26,806.00)	(38,507.00)	(51,222.00)
Accounts payable	(2,198.00)	11,627.00	(13,481.00)
Accured inventory liabilities	8,276.00	6,985.00	(1,785.00)
Other accured liabilities	3,271.00	7,837.00	1,777.00
Sales tax collected	517.00	161.00	(4,232.00)
Income taxes payable	19,304.00	(35,075.00)	30,951.00
Accrued compensation and related expenses	11,561.00	(6,282.00)	4,695.00
Deferred gift card revenue	11,326.00	9,306.00	13,711.00
Other non-cash balances	7,373.00	5,217.00	5,632.00
Net cash provided by operating activities	314,449.00	278,339.00	280,113.00
Cash flows from investing activities
Purchase of property and equipment	(119,733.00)	(106,408.00)	(93,229.00)
Net cash used in investing activities	(119,733.00)	(106,408.00)	(93,229.00)
Cash flows from financing activities
Proceeds from exercise of stock options	2,913.00	8,171.00	11,014.00
Excess tax benefits from stock-based compensation	413.00	6,457.00	9,901.00
Registration fees associated with shelf registration statement	0.00	0.00	(393.00)
Purchase of non-controlling interest	0.00	0.00	(26,013.00)
Taxes paid related to net share settlement of equity awards	(4,972.00)	(5,721.00)	0.00
Repurchase of common stock	(147,431.00)	0.00	0.00
Net cash (used in) provided by financing activities	(149,077.00)	8,907.00	(5,491.00)
Effect of exchange rate changes on cash	(79,809.00)	(72,368.00)	(651.00)
(Decrease) increase in cash and cash equivalents	(34,170.00)	108,470.00	180,742.00
Cash and cash equivalents, beginning of period	$698,649.00	$590,179.00	$409,437.00
Cash and cash equivalents, end of period	$664,479.00	$698,649.00	$590,179.00

1. Compute the following ratios for the years ended February 1, 2015, and February 2, 2014, or as of the end of those two years, as appropriate.

Beginning balances for the year ended February 2, 2014, are not available; that is, you do not have a balance sheet as of February 3, 2013. Therefore, to be consistent, use year-end balances for both years where you would normally use average amounts for the year. Finally, note that the company does not report interest expense separately on its income statement. Ignore any interest expense in computing the return on assets ratio. Use a 360 day year in days sales calculations.

	2014	2013
a. Current ratio
b. Quick ratio
c. Cash flow from operations to current liabilities ratio
d. Number of days' sales in receivables
e. Number of days' sales in inventory
f. Return on assets ratio
g. Return on common stockholders' equity ratio

2. Comment on lululemons liquidity. Has it improved or declined over the two-year period.

Check all that apply.

a. Both the current ratio and the quick ratio declined over the two-year period.

b. The number of days sales in inventory in 2014 means that the company turns its inventory over about every six months.

c. Cash flow from operations to current liabilities declined over the two-year period.

d. Declining liquidity ratios indicate that the company appears to be unable to meet its short-term obligations

3. Comment on lululemons profitability.

Check all that apply.

a. The return on assets and the return on common stockholders equity ratios declined from the prior year, and they still indicate a relatively high level of profitability.

b. Other factors, including information on the current market price of the stock, should be considered before making a decision.

c. Earnings per share declined from the prior year making it a poor investment.

d. The company did not pay dividends in either of the two years and therefore would not be a good investment for those who want periodic dividend receipts.