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

A. 1995
B. 1996
C. 1997
D. 1998
E. 1999

Answer: Option C

Explanation:

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.