HealthyLiving Hospital recorded the following financial data for the year:

HealthyLiving Hospital reported total revenue of £1,500,000, operating expenses of £900,000, interest expense of £50,000, and net income of £200,000.

Requirements:

1. Calculate the interest coverage ratio for HealthyLiving Hospital.
2. Prepare a detailed income statement for the year ended 31 December 2021.
3. Discuss the potential impact of changing interest rates on HealthyLiving Hospital’s profitability.