Consider the following data relating to different points in time:

TO Buy raw materials for £200.

Tl Add labour for £40; items could now be sold for £300.

T2 Put items in special package for £20; items could now be sold for

£400.

T3 Smith (because of inflation) offers £450, if in good condition. Cost to us of making identical item of stock in its special package is now

£300 (because of inflation).

T4 Agree to sell to Smith for £450.

T5 Deliver goods to Smith.

T6 Smith signs as having received in good condition.

T7 Smith pays £450.

Required:

Calculate at each point in time as many different measurements of profit as you can, explaining the basis of each calculation. Which

'profit' do you consider to be a 'true and fair view' of the position of the business?