Kablossom started business in 2015 with total assets of $35,000 and total liabilities of $32,000. At the end of 2015, Kablossom's total assets were $65,000, and total liabilities were $20,000. After analyzing the data, answer the following questions:
1. What was the amount of the increase or decrease in shareholders' equity?
2. Identify two possible reasons for the change in shareholders' equity during the year.