The purchasing officer for The Majestic Emporium has prepared a purchases budget for the financial year ending 31 March 2017, based on the following data:

Purchases for February 2017 Purchases for March 2017 Ending inventory —     31 March 2017 Budgeted sales:                       April 2017                                     May 2017                                     June 2017                                     July 2017

$380000 449 000 438900 676000 618000 714000 660000

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 60% of its purchases in the month of purchase, 30% in the following month, and 10% in the second month following.

Required

A.    Calculate the amount of purchases required for April and May of 2017.

B.    Calculate the estimated cash payments in April and May for inventory purchased.