You are a stock analyst and have gathered the data below. Based on your calculations, the red flags in the data may indicate which frauds may be occurring?

	Average Inventory		Total Revenue		Cost of Goods Sold		Spoiled lumber expense
Fraser Timber	64,000		261,000		190,000		5,300
Mac Forest Products	112,000		455,000		334,000		9,500
Columbia Timber	100,000		419,000		307,000		8,800
Cansell Resources	152,000		639,500		386,000		11,000
Terra Tree	76,000		313,000		225,000		2,500

Select one:

a. Understatement of spoiled lumber expense.

b. Overstatement of inventory.

c. Kickbacks.

d. Cash larceny.

e. Both (a) and (b)