Franklin Tools, which sells power tools, had the following details for December and January:

Item	December (£)	January (£)
Cost of Goods Sold	350,000
Projected Increase (%)	6%
Inventory Balance (End)	28,000	30,000
Accounts Payable Balance	38,000
Cash Payments (Current Month)	75%
Cash Payments (Following Month)	25%

Requirements:

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