The following condensed financial information is available for lululemon athletica inc. 

Instructions 

a. Perform a horizontal percentage of base year analysis of lululemon’s statement of operations and balance sheet, assuming 2018 is the base year. 

b. Using the analyses you prepared in part (a), identify any significant changes between 2018 and 2021. 

c. Which do you think would be more useful—percentage of the base-year amount or calculating the percentage change between periods—to analyze lululemon between 2018 and 2021? Explain. 

lululemon’s financial information presented was prepared using the accounting standards required in the United States and not IFRS. In what ways might the use of different accounting standards impact the financial state

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Net revenue Cost of goods sold Gross profit Other expenses Profit before income taxes Income tax expense Profit for the year Assets Current assets Non-current assets Total assets LULULEMON ATHLETICA INC. Consolidated Statements of Operations Fiscal Year Ended (in USD thousands) Jan. 31, 2021 Feb. 2, 2020 $4,401,879 1,937,888 2,463,991 1,644,641 819,350 230,437 $588,913 $ 3,979,296 1,755,910 Liabilities and Shareholders' Equity Current liabilities Non-current liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity 2,223,386 1,325,993 897,393 251,797 $ 645,596 LULULEMON ATHLETICA INC. Consolidated Balance Sheet (in USD thousands) Jan. 31, 2021 $2,124,379 2,060,836 $4,185,215 $ 883,178 743,471 1,626,649 2,558,566 $4,185,215 Feb. 3, 2019 $ 3,288,319 1,472,032 1,816,287 1,101,037 715,250 231,449 $ 483,801 Feb. 2, 2020 $1,807,938 1,473,416 $3,281,354 Feb. 3, 2019 $1,429,282 655,429 $2,084,711 $ 500,477 138,259 $ 620,4181 708,718 1,329,136 638,736 1,952,218 1,445,975 $3,281,354 $2,084,711 Jan. 28, 2018 $2,649,181 1,250,391 1,398,790 938,792 459,998 201,336 $ 258,662 Jan. 28, 2018 $1,436,282 562,201 $1,998,483 $ 292,598 108,925 401,523 1,596,960 $1,998,483