Styles Salon had $87,000 of total assets and $52,000 of total shareholders’ equity at December 31, 2013. At December 31, 2014, Styles Salon had assets totaling $153,000 and shareholders’ equity totaling $81,000.

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.