Insufficient information to calculate profit accurately Steps:

• Sales = takings banked = $16,400.
• Purchases require adjusting payments ($8,500) for change in trade payables, but balance ($1,200) is ambiguous (opening or closing not specified; first year implies opening 1,200 and purchases $9,700).
• Cost of goods sold = purchases + goods for own use ($1,000) - closing inventory ($0) = $10,700 (assuming closing payables).
• Profit = sales - cost of goods sold = $5,700 (not in options, confirming ambiguity).

Why B is correct:

• Not applicable; calculation yields $5,700, but B ($5,000) may assume unstated adjustment like different payables treatment.

Why the others are wrong:

• A ($4,500): Understates profit by overadding costs (e.g., extra$1,200 adjustment).

Not enough information. Final answer: Not enough information.