The accountant for Schulz Ltd compiled the following figures in order to estimate budgeted cash payments for March and April 2016:

Purchases for December                  $156 000

Purchases for January                       149 000

Purchases for February                     158 700

Ending inventory — 28 February       131 400

Budget sales: March                          248 400

                             April                             223 000

                             May                              265 000

                             June                             240 000

Schulz Ltd uses the following assumptions when preparing budgets. The cost of sales is 60% of sales. The company pays for 60% of its purchases in the month after purchase, 30% in the second month, following the purchase and 10% in the third month following the purchase. No discounts are received. It is business policy to maintain a month-end inventory balance sufficient to meet the projected sales requirement for the following month.

Required

A. Calculate the budgeted purchases for March and April 2016. Ignore GST.

B. Prepare a schedule of expected cash payments for purchases for March and April 2016