DEF Construction builds commercial properties. Financial transactions for 2023 include:

Transactions (in $ millions)	Amount
Cash Receipts	180.0
Credit Sales	90.0
Cash Payments	130.0
Accounts Receivable	55.0
Construction Costs	100.0
Estimated Warranty Costs	20.0

Requirements:

• Prepare DEF Construction's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated warranty costs on financial statements.
• Analyze the treatment of accounts receivable and construction costs under the conservatism principle.