West Electronics, which sells consumer electronics, had the following details for July and August:

Item	July (£)	August (£)
Cost of Goods Sold	500,000
Projected Increase (%)	2%
Inventory Balance (End)	40,000	42,000
Accounts Payable Balance	45,000
Cash Payments (Current Month)	70%
Cash Payments (Following Month)	30%

Requirements:

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