ABC Builders constructs residential properties. Financial transactions for 2023 are provided below:

Transactions (in $ millions)	Amount
Cash Receipts	180.0
Credit Sales	70.0
Cash Payments	140.0
Accounts Receivable	50.0
Construction Costs	110.0
Estimated Warranty Costs	15.0

Requirements:

• Prepare ABC Builders' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated warranty costs on financial statements.
• Analyze the treatment of accounts receivable and construction costs under the conservatism principle.