NextWave Innovations has the following inventory details for the year:

Item	Amount (£)
Beginning Inventory	30,000
Purchases	120,000
Ending Inventory	20,000
Sales Revenue	200,000

Requirements:

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