Perform a vertical analysis on the data below and describe any potential red flags regarding possible understatement of cost of goods sold. Year 1 Year 2 Year 5 Answer: Sales $200,000 $210,000 $220,000 $274,000 $413,000 COGS 150,000 165,000 164,000 132,000 120,000 Gross Year 3 Year 4 profit 50,000 45,000 56,000 142,000 293,000