Principle of finance question help

[Onlinestudydeg]

I hope this type of question is allowed here.

I am doing the sample test of principle of finance and this question has stumped me,

Company A collects 20% of its sales in the month the sale is made, while collecting 60% of sales in the following month.

Company A's sales for Jan to April are (Jan:$100, Feb:$125,Mar:$110,Apr:$125)

Company has expenses of $50 every month. If company had to make a loan payment of $30 in April, it would have

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The correct answer they say is $8 left, I could not figure out how they got $8 left. My answer was $63 left.

I also tried all combinations that I could think of, may be they do not account for last month's 20% collection etc. but could not come with $8 as answer.

I am worried am I missing a logic or different way to calculate, I was using the model I learnt in financial accounting

[Prloko]

I hope this type of question is allowed here.

I am doing the sample test of principle of finance and this question has stumped me,

Company A collects 20% of its sales in the month the sale is made, while collecting 60% of sales in the following month.

Company A's sales for Jan to April are (Jan:$100, Feb:$125,Mar:$110,Apr:$125)

Company has expenses of $50 every month. If company had to make a loan payment of $30 in April, it would have

---------------
The correct answer they say is $8 left, I could not figure out how they got $8 left. My answer was $63 left.

I also tried all combinations that I could think of, may be they do not account for last month's 20% collection etc. but could not come with $8 as answer.

I am worried am I missing a logic or different way to calculate, I was using the model I learnt in financial accounting

Is this the entire question? Is there anything missing?

[Onlinestudydeg]

That is the entire question, I rechecked the wordings they are exact.

the only thing I did not post was 4 Answer choices which were

A. have to borrow an additional $8
B. have $8 left (as per answer sheet this is correct answer )
C. have $108 left
D. have to borrow an additional $108

[Prloko]

I haven't tried to work out the problem in full, but this is looking like a revenue recognition problem. It is probably assumed money was borrowed to finance the monthly expenses (especially in the beginning). Have you tried listing your AR and AP?

The question is a bit vague. What study source are you using?

[Onlinestudydeg]

Yes I tried to solve it using the revenue recognition model but could not come to one of the answer choices.

This was a question in the DSST offical ebook guide @ College Test Prep Guide E-Book Options, for principle of finance.

Anyway I already gave the exam yesterday a similar question was also in the exam but using same revenu recognition model I was able to solve the exam question and the answer was one of the choices there; so I am chalking this to a wrong question in the guide but it did give me lot of stress as to if I am missing some different way of solving such a question.

Thanks for checking.