Taylor Electronics, which sells home entertainment systems, had the following details for November and December:

Item	November (£)	December (£)
Cost of Goods Sold	180,000
Projected Increase (%)	7%
Inventory Balance (End)	14,000	18,000
Accounts Payable Balance	20,000
Cash Payments (Current Month)	60%
Cash Payments (Following Month)	40%

Requirements:

1. Determine the amount of purchases budgeted for December.
2. Calculate the total cash payments for inventory purchases in December and prepare a cash budget.