HealthyLife Hospital has the following inventory details for the year:

HealthyLife Hospital reported beginning inventory of £60,000, purchases of £250,000, ending inventory of £40,000, and total revenue of £350,000.

Requirements:

1. Compute the Cost of Goods Sold (COGS) for HealthyLife Hospital.
2. Prepare an income statement for the year ended 31 December 2021.
3. Discuss the importance of the inventory turnover ratio and its impact on HealthyLife Hospital’s efficiency.