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

Transactions (in $ millions)	Amount
Contract Revenue	150.0
Accounts Receivable	25.0
Cash Payments	90.0
Accounts Payable	20.0
Construction Costs	70.0
Estimated Warranty Costs	15.0

Requirements:

• Prepare DEF Constructors' 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 under the conservatism principle.