Lee’s Home Goods, which sells home decor items, had $150,000 of cost of goods sold during the month of October. The company projects an 8 percent increase in cost of goods sold during November. The inventory balance as of October 31 is $10,000, and the desired ending inventory balance for November is $12,000. Lee pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of October 31 was $15,000.

Requirements:

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