ABC Law Firm offers legal representation. Financial transactions for 2023 include:

Transactions (in $)	Amount
Cash Receipts	200,000
Credit Sales	50,000
Cash Payments	150,000
Accounts Receivable	30,000
Professional Fees	100,000
Estimated Legal Settlements	20,000

Requirements:

• Prepare ABC Law Firm's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated legal settlements on financial statements.
• Analyze the treatment of accounts receivable and professional fees under the conservatism principle.