FutureTech Ltd has provided the following trial balance data as of 31 December 2021:

• Sales Revenue: £700,000
• Cost of Goods Sold: £400,000
• Administrative Expenses: £80,000
• Selling Expenses: £60,000
• Interest Expense: £20,000
• Income Tax Expense: £40,000

Requirements:

1. Prepare a trial balance as of 31 December 2021.
2. Using the trial balance, prepare an income statement for FutureTech Ltd for the year ended 31 December 2021.
3. Calculate the Return on Equity (ROE) if the total equity is £200,000 and discuss its relevance.