Great Wall Chinese Cuisine had \($93,000\) of total assets and \($31,000\) of total stock¬ holders’ equity at May 31,2010. At May 31, 2011, Great Wall Chinese Cuisine had assets totaling \($147,000\) and stockholders’ 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.