Garcia Computers, which sells laptops and desktops, had $400,000 of cost of goods sold during the month of February. The company projects a 3 percent increase in cost of goods sold during March. The inventory balance as of February 28 is $30,000, and the desired ending inventory balance for March is $32,000. Garcia pays cash to settle 80 percent of its purchases on account during the month of purchase and pays the remaining 20 percent in the month following the purchase. The accounts payable balance as of February 28 was $40,000.

Requirements:

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