Taylor Electronics, which sells home entertainment systems, had $180,000 of cost of goods sold during the month of November. The company projects a 7 percent increase in cost of goods sold during December. The inventory balance as of November 30 is $14,000, and the desired ending inventory balance for December is $18,000. Taylor pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of November 30 was $20,000.

Requirements:

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