Richards Corporation is preparing the budget for the month of July.All sales are on account. Thirty percent of credit sales are collected in the month of sale and the remaining seventy percent are collected in the month subsequent to the sale. The accounts receivable balance on June 30 will be collected in July. All merchandise purchases are on account. Twenty percent of merchandise purchases are paid in the month of the purchase and the remaining eighty percent are paid in the month after the purchase. The budgeted inventory balance on July 31 is $22,000. The inventory balance on June 30 is $30,000. The companys cash budget for July shows expected cash collections of $77,000, expected cash disbursements for merchandise purchases of $44,500, and cash paid for selling and administrative expenses of $15,000. The accounts receivable balance on June 30 is $50,000. a. Compute budgeted sales for July. b. Compute budgeted merchandise purchases for July.