Final answer:
The total amount of current assets for Super Mario Corp. is $2,800, calculated by adding Accounts Receivable ($1,000), Inventory ($600), and Cash ($1,200).
Step-by-step explanation:
To calculate the amount of current assets for Super Mario Corp., we need to identify which assets are likely to be converted into cash within one year or one business cycle, whatever is longer. Current assets typically include cash and cash equivalents, accounts receivable, inventory, marketable securities, and prepaid expenses.
In this case, Super Mario Corp. has the following current assets:
- Accounts Receivable: $1,000
- Inventory: $600
- Cash: $1,200
We do not include the Unearned Revenue because this is a liability, representing revenue received but not yet earned. The equipment value is not considered a current asset as it is a long-term asset.
So, the total amount of current assets for Super Mario Corp. is calculated as:
Accounts Receivable ($1,000) + Inventory ($600) + Cash ($1,200) = $2,800.