In the course of your audit of the Karen Corporation, its controller is attempting to determine the amount of cash to be reported on its December 31, 2018 statement of financial position. The following information is provided:

• Commercial savings account of P1,200,000 and a commercial checking account balance of P1,800,000 are held at PS Bank..
• Travel advances of P360,000 for executive travel for the first quarter of the next year (employee to reimburse through salary deduction).
• A separate cash fund in the amount of P3,000,000 is restricted for the retirement of a long term debt.
• Petty cash fund of P10,000.
• An IOU from a company officer in the amount of P40.000.
• A bank overdraft of P250,000 has occurred at one of the banks, where the company use to deposit its cash receipts. At the present time, the company has no deposits at this bank.
• The company has two certificates of deposit, each totaling P1,000,000. These certificates of deposit have a maturity of 120 days.
• Karen Corporation has received a check dated January 2, 2019 in the amount of P150,000.
• Karen Corporation has agreed to maintain a cash balance of P200, 000 at all times at PS Bank to ensure future credit availability.
• Currency and coin on hand amounted to P15, 000.

QUESTION:

Based on the above and the result of your audit, how much will be reported as cash and cash equivalents at December 31, 2018?