A business has just completed its first year of trading. The cost of its closing inventory valued using the AVCO method is \(£ 7,300\). If the FIFO method had been used it would have been \(£ 8,100\). The effect of adopting FIFO instead of AVCO on this business's first set of annual financial statements would be:

(A) To increase total assets, with no effect on profit

(B) To increase current assets and increase gross profit

(C) To increase net assets and reduce net profit

(D) To increase non-current assets and increase net profit