Capital structure question from ACCA study hub

A company’s assets and liabilities at the beginning and end of a year were: 1 January 31 December $ $ Non-current assets 100,000 150,000 Current assets 120,000 110,000 Payables & accrued expenses 30,000 40,000 Liability for taxation 20,000 18,000 Issued equity shares of $1 100,000 125,000 Share premium 5,000 10,000 Reserves 50,000 ? Dividends payable 15,000 20,000 During the year, the company issued a further 25,000 shares at $1.20 whilst cash payments of $20,000 for dividends and $22,000 for taxation were made. What was the company’s profit before taxation for the year? The correct answer is C. $ Opening net assets (100 + 120 ? 30 ? 20 ? 15) 155,000 Closing net assets (150 + 110 ? 40 ? 18 ? 20) 182,000 Increase 27,000 Add: Dividends appropriated (20 ? 15 + 20) 25,000 Tax charge (22 ? 20 + 18) 20,000 72,000 Less: Proceeds of share issue 30,000 42,000 I don't understand why increase in net assets are used to arrive at the profit figure and why proceed of share issues are deducted. Can you explain how they have arrived at the answer please?