At the beginning of the annual audit of Hinse Corporation, a wholesale distributor, Lynna Magnum, the auditor, was given a copy of the company's financial statements as prepared by the company's accountant. On reviewing these statements, Magnum noted the following abnormal conditions: 

1. The accounts receivable outstanding at the year-end represent an unusually high number of average days' credit sales. 

2. The inventories on hand at the year-end represent an unusually high proportion of the current assets. 

3. The working capital ratio of the company is almost twice that of the previous year. 

4. The percentage of gross profit on net sales is considerably in excess of that of previous years. 

5. The rate of turnover of inventory is unusually low in comparison with previous years. Taking all the above conditions together, what irregularities might Magnum suspect regarding sales and inventories?