The maximum difference between the amount invested in Raw materials and value of sales of finished goods was during the year?
A
1995
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B
1996
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C
1997
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D
1998
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Solution
The correct option is D 1997 The differences between the amount invested in raw material and the value of sales of finished goods for various years are: For 1995 = Rs. (200 - 120) lakhs = Rs. 80 lakhs. For 1996 = Rs. (300 - 225) lakhs = Rs. 75 lakhs. For 1997 = Rs. (500 - 375) lakhs = Rs. 125 lakhs. For 1998 = Rs. (400 - 330) lakhs = Rs. 70 lakhs. For 1999 = Rs. (600 - 525) lakhs = Rs. 75 lakhs. For 2000 = Rs. (460 - 420) lakhs = Rs. 40 lakhs. Clearly, maximum difference was during 1997.