ABC Software Inc. develops custom software solutions. Financial transactions for 2023 are as follows:

Transactions (in $ millions)	Amount
Cash Receipts	40.0
Credit Sales	20.0
Cash Payments	25.0
Accounts Receivable	10.0
R&D Expenses	15.0
Estimated Software Bugs Fix Costs	5.0

Requirements:

• Prepare ABC Software Inc.'s income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated software bugs fix costs on financial statements.
• Analyze the treatment of R&D expenses under the conservatism principle.