East Coast Appliances, which sells home appliances, had the following details for January and February:

Item	January (£)	February (£)
Cost of Goods Sold	260,000
Projected Increase (%)	5%
Inventory Balance (End)	20,000	23,000
Accounts Payable Balance	30,000
Cash Payments (Current Month)	65%
Cash Payments (Following Month)	35%

Requirements:

1. Determine the amount of purchases budgeted for February.
2. Calculate the total cash payments for inventory purchases in February and prepare a cash budget.