Great Wall Chinese Cuisine had $93,000 of total assets and $31,000 of total shareholders’ equity at May 31, 2013. At May 31, 2014, Great Wall Chinese Cuisine had assets totaling $147,000 and shareholders’ equity totaling $87,000.

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.