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

NextWave Technologies reported beginning inventory of £25,000, net purchases of £110,000, ending inventory of £15,000, and sales revenue of £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 NextWave Technologies' operations.