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.

These questions are designed to challenge students with detailed calculations and in-depth analysis, providing a comprehensive understanding of various accounting concepts and practices, while using different hospital names and values.