ABC Manufacturing Inc. has the following information for the financial year ended 31 December 2020:

• Opening Inventory: £50,000
• Purchases: £200,000
• Closing Inventory: £40,000
• Sales Revenue: £350,000
• Operating Expenses: £70,000
• Depreciation: £15,000

Requirements:

1. Calculate the Cost of Goods Sold (COGS) for the year.
2. Determine the Gross Profit and Net Profit for the year.
3. Prepare a detailed income statement for ABC Manufacturing Inc. for the year ended 31 December 2020.