WellnessCare Hospital has the following inventory details for the year:

WellnessCare Hospital reported beginning inventory of £50,000, purchases of £300,000, ending inventory of £45,000, and total revenue of £400,000.

Requirements:

1. Compute the Cost of Goods Sold (COGS) for WellnessCare Hospital.
2. Prepare an income statement for the year ended 31 December 2021.
3. Discuss the inventory turnover ratio and its significance for the hospital’s operations.