ABC Catering provides event catering. Financial transactions for 2023 are summarized below:

Transactions (in $)	Amount
Cash Receipts	80,000
Accounts Receivable Collected	10,000
Cash Payments	50,000
Accounts Payable Paid	8,000
Food Purchases	30,000

Requirements:

• Prepare ABC Catering's income statement for 2023 using the modified cash basis.
• Calculate the net income, considering cash receipts, payments, and collections from accounts receivable.
• Discuss the treatment of food purchases and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.