Quantum Innovations has the following inventory and sales data:

Item	Amount (£)
Beginning Inventory	25,000
Net Purchases	85,000
Ending Inventory	15,000
Sales Revenue	150,000
Operating Expenses	40,000

Requirements:

1. Calculate the Cost of Goods Sold (COGS) and Gross Profit for the year.
2. Create an income statement for Quantum Innovations for the year ended 31 December 2021.
3. Determine the inventory turnover ratio and analyze its impact on the company’s operations.