Johnson Sporting Goods, which sells athletic equipment, had the following details for September and October:

Item	September (£)	October (£)
Cost of Goods Sold	300,000
Projected Increase (%)	4%
Inventory Balance (End)	22,000	20,000
Accounts Payable Balance	28,000
Cash Payments (Current Month)	65%
Cash Payments (Following Month)	35%

Requirements:

1. Determine the amount of purchases budgeted for October.
2. Calculate the total cash payments for inventory purchases in October and discuss the impact on the cash budget.