TechWorld, which sells smartphones, had the following details for April and May:

Item	April (£)	May (£)
Cost of Goods Sold	400,000
Projected Increase (%)	5%
Inventory Balance (End)	35,000	38,000
Accounts Payable Balance	45,000
Cash Payments (Current Month)	70%
Cash Payments (Following Month)	30%

Requirements:

1. Determine the amount of purchases budgeted for May.
2. Calculate the total cash payments for inventory purchases in May and prepare a cash budget.
3. Determine the asset ratio (Total Assets / Total Liabilities) at the end of May if total assets are £700,000.