ABC Manufacturing Inc. produces machinery parts. Financial transactions for 2023 are provided below:

Transactions (in $ millions)	Amount
Cash Sales	40.0
Credit Sales	20.0
Cash Payments	30.0
Accounts Payable Paid	8.0
Raw Materials Purchases	15.0

Requirements:

• Prepare ABC Manufacturing Inc.'s income statement using the modified cash basis.
• Calculate the net income considering cash sales, credit sales, and cash payments.
• Discuss how raw materials purchases and payments to accounts payable are treated under the modified cash basis.
• Analyze the impact of including credit sales on ABC Manufacturing Inc.'s financial statements.