2. Do you think red flags of possible fraud are present in 2015? By comparing these numbers to Sales you can do a vertical analysis. To do so, assume that Sales were $8,450,000 and 8,150,000 for 2015 and 2014 respectively. Also, Cost of Goods Sold were $6,242,500 and $6,080,000 for 2015 and 2014 respectively 2015 2014 $1,175,500 $1,654,500 $2,625,000 $1,650,000 $224,500 $182,000 $450,000 $425,000 Finished goods inventory (Approx. 300 million ft.-2015) Copper rod inventory (Approx. 5.9 million lbs.-2015) Plastics inventory (Approx. 1.1 million lbs.-2015) Accounts payable (for inv. purchases) Days purchases in AP Days sales in receivables Market price of insulated wire (per ft.) Market price of copper rod (per lb.) Market price of plastics (per lb.) 43.6 days 56.3 days 44.2 days 48.4 days $0.008 $0.009 $0.480 $0.480 $0.120 $0.190