How is that correct ?

How is that correct ?

Problem #3 Following are Rover Corporation's balance sheet accounts at 12/31/2015 Cash Retained earnings Inventory Equpment ST investments Accumulated depreciation Capital stock $15,000 13,000 6,000 30,000 14,000 5.000 30,000 Accounts payable Notes pyble due 9/30/2011 Accounts receivable Notes pyble due 6/30/2013 LT investments Prepaid insurance Land $20,000 18,000 22,000 50,000 13,000 2,000 34.000 1. What was Rover Corporation's current ratio at 12/31/2015? $59,000 current assets/$38,000 current liabilities- 1.55 2. What was Rover Corporation's working capital at 12/31/2015? $59,000 current assets $38,000 current liabilities $21,000 of working capital 3. If Rover uses $5,000 of cash to pay off some of the short-term debt, what effect will that have on the company's current ratio? Current ratio will increase: $54,000 current assets/S33/000 current liabilities 1.64