Identify any "red flags," or possible symptoms of fraud, indicated by examining the halamn. \begin{tabular}{|c|c|c|} \hline Income Statement & 2006 & 2007 \\ \hline Net sales & $275,000 & $420,000 \\ \hline Cost of goods sold & 60,000 & 80,000 \\ \hline Gross margin & $215,000 & $340,000 \\ \hline \multicolumn{3}{|l|}{ Expenses: } \\ \hline Salaries & $50,000 & $75,000 \\ \hline Warehousing costs & 40,000 & 60,000 \\ \hline Advertising & 30,000 & 45,000 \\ \hline Taxes & 22,500 & 37.500 \\ \hline Total expenses & $142,500 & $215,500 \\ \hline Net income & $72,500 & $122,500 \\ \hline \end{tabular}