The purchasing officer for Cellar Cork Ltd has prepared a purchases budget for the financial year ending 31 March 2025, based on the following data.

Required

(a) Calculate the amount of purchases required for April and May of 2025.

(b) Calculate the estimated cash payments in April and May for inventory purchased.

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Purchases for February 2025 Purchases for March 2025 $380 000 449 000 Ending inventory-31 March 2025 438 900 Budgeted sales: April 2025 May 2025 June 2025 July 2025 656 000 598 000 704 000 650 000 The cost of sales is 65% of sales, and the store's policy is to maintain a month- end inventory balance sufficient to meet the projected sales requirement for the following month. The store pays for 80% of its purchases in the month of purchase, 15% in the following month, and 5% in the second month following.