The following information pertains to Tiffany Company:

Month Sales Purchases
January $30,000 $16,000
February $40,000 $20,000
March $50,000 $28,000

• Cash is collected from customers in the following manner:
Month of sale 30%
Month following the sale 70%
• 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
• Labor costs are 20% of sales. Other operating costs are $15,000 per month (including $4,000 of depreciation). Both of these are paid in the month incurred.
• The cash balance on March 1 is $4,000. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.

1. How much cash will be paid to suppliers in March?

2. How much cash will be collected from customers in March?