Profit calculation requires opening capital, which is missing

Steps:

• Calculate net assets (owner's capital) at end of Year 1: non-current assets $9,000 + net current assets$1,000 = $10,000.
• Calculate net assets at end of Year 2: $12,000 +$2,000 = $14,000.
• Profit = closing capital - opening capital + drawings; opening capital at start of Year 1 is not provided.
• Without opening capital for Year 1, profit for Year 1 cannot be determined.

Why D is correct:

• Not applicable; calculation yields $7,000 only for Year 2 profit using Year 1 closing as opening.

Why the others are wrong:

• A: $1,000 matches Year 1 net current assets, irrelevant to profit.
• B: $4,000 matches increase in net assets from Year 1 to Year 2, ignores drawings.
• C: $5,000 matches Year 1 drawings, not profit.

Not enough information.

Final answer: Not enough information.