SmartTech Inc. recorded the following financial data for the year:

Item	Amount (£)
Sales Revenue	600,000
Operating Expenses	200,000
Interest Expense	30,000
Tax Expense	40,000
Net Income	70,000

Requirements:

1. Compute the interest coverage ratio.
2. Generate an income statement for SmartTech Inc. for the year ended 31 December 2021.
3. Discuss the effects of interest rates on the company’s profitability.