NextWave Technologies has reported the following inventory and sales data for the year:

Item	Amount (£)
Beginning Inventory	25,000
Purchases	110,000
Ending Inventory	15,000
Sales Revenue	220,000

Requirements:

1. Determine the Cost of Goods Sold (COGS) for NextWave Technologies.
2. Prepare an income statement for the year ended 31 December 2021.
3. Analyze the inventory turnover ratio and its impact on company operations.