The controller for Wallaby plc is attempting to determine the amount of cash and cash

equivalents to be reported on its December $31,2022,$ statement of financial position. The

following information is provided.

a$)$ A commercial savings account of $600,000$ and a commercial checking account balance

of $800,000$ are held at First National Bank of Olathe.

b$)$ Money market fund account held at Volonte Co$.($a mutual fund organization$)$ permits

Wallaby to write checks on this balance, $5,000,000.$

c$)$ Travel advances of $180,000$ for executive travel for the first quarter of next year

$($employee to reimburse through salary reduction$).$

d$)$ A separate cash fund in the amount of $1,500,000$ is restricted for the retirement of

long$-$term debt.

e$)$ Petty cash fund of $1,000.$

f$)$ An I.O$.$U$.$ from Marianne Koch, a company customer, in the amount of $150,000.$

g$)$ A bank overdraft of $110,000$ has occurred at one of the banks the company uses to

deposit its cash receipts. At the present time, the company has no deposits at this bank.

h$)$ The company has two certificates of deposit, each totaling $500,000.$ These CDs have a

maturity of $120$ days.

i$)$ Wallaby has received a check from a customer that is dated January $12,2023,$ in the

amount of $125,000.$

j$)$ Wallaby has agreed to maintain a cash balance of $500,000$ at all times at First National

Bank of Olathe to ensure future credit availability.

k$)$ Wallaby has purchased $2,100,000$ of commercial paper of Sergio Leone Co$.$ which is

due in $60$ days.

Currency and coin on hand amounted to $7,700.$

Instructions

a$)$ Compute the amount of cash $($and cash equivalents$)$ to be reported on Wallaby plc$\text{'}$s statement

of financial position at December $31,2022$