This case details an inventory accounting fraud orchestrated by two top executives of Health Management, Inc. (HMI, a New York-based pharmaceuticals distributor. The HMI fraud and following lawsuit against HMI's auditors was the first major test of an important federal statute, the Private Securities Litigation Reform Act of 1995 (PSLRA). The PLSRA made it less likely that auditors are sued and plaintiffs recover damages, under the Securities Exchange Act of 1934. The Act was heavily lobbied for by accounting firms who argued that they were subject to a growing burden of unnecessary class-action lawsuits and was a major shift in the litigation environment for auditors. QUESTION: The fraudulent accounting at HMI increased ending inventory, decreased COGS and increased gross profit. The company also manipulated some accruals, such as the allowance for doubtful accounts. If you could "turn some accounting screws" to squeeze some additional income from the F/S in this case, how would you accomplish that and why? Assume HMI's F/S are typical for an inventory-based firm