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

Transactions (in $ millions)	Amount
Cash Sales	500,000
Credit Sales	200,000
Cash Payments	300,000
Accounts Receivable	150,000
R&D Expenses	80,000
Estimated Warranty Claims	40,000
Depreciation Expense	30,000
Inventory Purchases	120,000

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 and depreciation expense on financial statements.
   • Analyze the treatment of accounts receivable and R&D expenses under the conservatism principle.
   • Prepare a balance sheet as of December 31, 2023.