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Question

The maximum difference between the amount invested in Raw materials and value of sales of finished goods was during the year?
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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.

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