XYZ Corporation is under investigation for possible financial statement fraud. The forensic accountant has identified several anomalies in the company's financial statements. One of the anomalies is a sudden increase in the company's net income for the current year, despite a decrease in its sales revenue. The forensic accountant suspects that the company may be manipulating its expenses to overstate its net income. To investigate this suspicion, the accountant has obtained the following information:

• Sales revenue for the current year: $5,000,000
• Sales revenue for the previous year: $6,000,000
• Cost of goods sold for the current year: $2,500,000
• Cost of goods sold for the previous year: $3,000,000
• Operating expenses for the current year: $1,000,000
• Operating expenses for the previous year: $800,000
• Depreciation expense for the current year: $200,000
• Depreciation expense for the previous year: $150,000
• Interest expense for the current year: $50,000
• Interest expense for the previous year: $60,000

(a) Calculate the company's net income for the current year and the previous year. (b) Calculate the company's gross profit margin for the current year and the previous year. (c) Calculate the company's operating profit margin for the current year and the previous year. (d) Calculate the company's net profit margin for the current year and the previous year. (e) Based on the results of your calculations, do you believe that the company is likely manipulating its expenses to overstate its net income? Explain your answer.

Note: Round all ratios to two decimal places.