Mountain Drycleaners had $91,000 of total assets and $7,000 of total stockholders’ equity at December 31, 2012. At December 31, 2013, Mountain Drycleaners had assets totaling $145,000 and stockholders’ equity totaling $73,000.
After analyzing the data, answer the following questions:
1. What was the amount of the increase or decrease in liabilities?
2. Identify a possible reason for the change in liabilities during the year.