ABC Construction Company builds residential properties. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Receipts	50.0
Accounts Receivable Collected	10.0
Cash Payments	40.0
Accounts Payable Paid	15.0
Construction Costs	30.0

Requirements:

• Prepare ABC Construction Company's income statement using the modified cash basis.
• Calculate the net income considering cash receipts, payments, and collections from accounts receivable.
• Discuss how construction costs and payments to accounts payable affect financial reporting under the modified cash basis.
• Analyze the impact of including accounts receivable collected on ABC Construction Company's financial statements.