Garcia Computers, which sells laptops and desktops, had the following details for February and March:

Item	February (£)	March (£)
Cost of Goods Sold	400,000
Projected Increase (%)	3%
Inventory Balance (End)	30,000	32,000
Accounts Payable Balance	40,000
Cash Payments (Current Month)	80%
Cash Payments (Following Month)	20%

Requirements:

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