Question 1 [5 points]

Selected information for Holden Company is given below.

20212020201920182017Operating expenses$59,280$58,240$56,680$54,080$52,000Accounts payable21,09021,09020,14019,38019,000

a) Calculate the percentage change for these items using 2017 as the base year. Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12%)

2021202020192018Operating expenses Accounts payable

b) Assuming all other things are constant, indicate whether the trend in accounts payable is favorable or unfavorable compared to the trend in operating expenses.

The trend is