Having reported its financial performance in the year a business finds that goods costing £74,500 removed by the owner have not been accounted for. The effect of correcting this error would be:
(a) No change in gross profit and net profit
(b) Gross profit increases by £74,500 and net profit increases by the same amount
(c) Gross profit increases by £74,500; but no change in net profit
(d) Gross profit as well as net profit decrease by £74,500