West Electronics, which sells consumer electronics, had $500,000 of cost of goods sold during the month of July. The company projects a 2 percent increase in cost of goods sold during August. The inventory balance as of July 31 is $40,000, and the desired ending inventory balance for August is $42,000. West 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 July 31 was $45,000.

Requirements:

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