Johnson Sporting Goods, which sells athletic equipment, had $300,000 of cost of goods sold during the month of September. The company projects a 4 percent increase in cost of goods sold during October. The inventory balance as of September 30 is $22,000, and the desired ending inventory balance for October is $20,000. Johnson 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 September 30 was $28,000.

Requirements:

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