Alphabet Inc. is preparing its financial statements for 2023. The financial data includes:

Transactions (in $ millions)	Amount
Cash Sales	600,000
Credit Sales	300,000
Cash Payments	350,000
Accounts Receivable	130,000
Advertising Expenses	200,000
Estimated Litigation Costs	45,000

Requirements:

• Prepare Alphabet Inc.'s income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated litigation costs on financial statements.
• Analyze the treatment of accounts receivable and advertising expenses under the conservatism principle.