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

Transactions (in $ millions)	Amount
Cash Sales	1,000,000
Credit Sales	500,000
Cash Payments	600,000
Accounts Receivable	160,000
Advertising Expenses	400,000
Estimated Litigation Costs	90,000
Depreciation Expense	50,000

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 and depreciation expense on financial statements.
• Analyze the treatment of accounts receivable and advertising expenses under the conservatism principle.
• Prepare a balance sheet as of December 31, 2023.
• Calculate and interpret the interest coverage ratio and net profit margin.