Which of the following statements regarding a horizontal analysis is not true?

Group of answer choices

A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.

A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.

If Fees Earned in Year $1$ is $$125,000$ and Fees Earned in Year $2$ is $$143,750,$ a horizontal analysis will indicate a $15\%$ increase over this period.

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.