ABC Online Retail sells electronics. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Sales	90.0
Credit Sales	40.0
Cash Payments	70.0
Accounts Receivable	30.0
Inventory Purchases	50.0
Estimated Product Returns	7.0

Requirements:

• Prepare ABC Online Retail's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product returns on financial statements.
• Analyze the treatment of accounts receivable and inventory purchases under the conservatism principle.