ABC Ad Agency specializes in digital marketing campaigns. Financial transactions for 2023 are provided below:

Transactions (in $ millions)	Amount
Cash Receipts	60.0
Accounts Receivable Collected	8.0
Cash Payments	40.0
Accounts Payable Paid	6.0
Operating Expenses	15.0

Requirements:

• Prepare ABC Ad Agency's income statement for 2023 using the modified cash basis.
• Calculate the net income, considering cash receipts, collections from accounts receivable, and cash payments.
• Discuss the treatment of operating expenses and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.
• Recommend strategies to enhance cash flow management and profitability.