NextWave Innovations has the following inventory details for the year:

NextWave Innovations reported beginning inventory of £35,000, purchases of £140,000, ending inventory of £25,000, and sales revenue of £250,000.

Requirements:

1. Compute the Cost of Goods Sold (COGS) for NextWave Innovations.
2. Prepare an income statement for the year ended 31 December 2021.
3. Discuss the inventory turnover ratio and its significance for NextWave Innovations.