All the following statements regarding a horizontal analysis are true EXCEPT: a. A horizontal analysis is used to compare an item in a current statement with the same item in prior statements. b. A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows. c. If fees Earned in 2009 is $150,000 and fees earned in 2010 is $187,500, a horizontal analysis will indicate a 25% increase over this period. d. When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change