Smith Company, which sells kitchen appliances, had $250,000 of cost of goods sold during the month of March. The company projects a 6 percent increase in cost of goods sold during April. The inventory balance as of March 31 is $20,000, and the desired ending inventory balance for April is $22,000. Smith pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of March 31 was $25,000.

Requirements:

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