1. Apple Inc. is evaluating its financial performance for the fiscal year 2023. The following transactions were recorded:

Transactions (in $ millions)	Amount
Cash Sales	300,000
Credit Sales	150,000
Cash Payments	180,000
Accounts Receivable	80,000
R&D Expenses	60,000
Estimated Warranty Claims	25,000

1. Requirements:
   • Prepare Apple Inc.'s income statement for 2023 using the modified cash basis.
   • Calculate net income considering the conservatism principle.
   • Discuss the impact of estimated warranty claims on financial statements.
   • Analyze the treatment of accounts receivable and R&D expenses under the conservatism principle.