Item8\ Part 2 of 5\ \ \ 10\ points\ eBookCheck my workCheck My Work button is now disabled1Item 8\ Required information\ Skip to question\ Horizontal analysis is a tool to evaluate changes in data across time. Two important tools of horizontal analysis are comparative statements and trend analysis. Comparative statements show amounts for two or more successive periods, often with changes disclosed in both absolute and percent terms. Trend analysis is used to reveal important changes occurring from one period to the next.\ \ \ \ \ Knowledge Check 01\ \ Compute the dollar change for accounts payable using the following information. Use year 1 as the base year.\ \ Accounts Payable balance on Year 1 is $75,000 and on Year 2 is $65,000.