Michaud Ltd. has the following information available for 2005 and 2006:

                                       2005                             2006

Total assets               $2,600,000                   $4,000,000

Which of the following statements is true regarding horizontal analysis with respect to Michaud?

a. It would show total assets has increased by 30 percent.

b. It would show total assets has increased by 53.8 percent.

c. There is not enough information available to perform horizontal analysis.

d. Horizontal analysis can not be performed using total assets.