You are an internal auditor at Streaming Entertainment Corporation. The Training and Development department in your organization is developing training materials on how to use financial analysis to identify fraud within the organization. The material will be presented to senior managers of the company at a management retreat. You have been asked to assist in developing materials by preparing content that can be used to discuss how to identify red flags of fraudulent activity by using financial statement analysis. Interpret why the red flags found in the specific case are indicators of fraud.