Luna Furniture, which sells office furniture, had $220,000 of cost of goods sold during the month of May. The company projects a 5 percent increase in cost of goods sold during June. The inventory balance as of May 31 is $18,000, and the desired ending inventory balance for June is $19,000. Luna 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 May 31 was $21,000.

Requirements:

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