GHI Health Services provides medical services. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Patient Service Revenue	80.0
Accounts Receivable	30.0
Cash Payments	50.0
Accounts Payable	20.0
Medical Supplies Purchases	40.0
Estimated Bad Debts	5.0

Requirements:

• Prepare GHI Health Services' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated bad debts on financial statements.
• Analyze the treatment of accounts receivable and medical supplies purchases under the conservatism principle.