East Coast Appliances, which sells home appliances, had $260,000 of cost of goods sold during the month of January. The company projects a 5 percent increase in cost of goods sold during February. The inventory balance as of January 31 is $20,000, and the desired ending inventory balance for February is $23,000. East Coast pays cash to settle 65 percent of its purchases on account during the month of purchase and pays the remaining 35 percent in the month following the purchase. The accounts payable balance as of January 31 was $30,000.

Requirements:

1. Determine the amount of purchases budgeted for February.
2. Determine the amount of cash payments budgeted for inventory purchases in February.