GHI Software Solutions develops custom software. Financial transactions for 2023 are as follows:

Transactions (in $ millions)	Amount
Cash Receipts	60.0
Credit Sales	30.0
Cash Payments	35.0
Accounts Receivable	20.0
R&D Expenses	25.0
Estimated Software Bugs Fix Costs	8.0

Requirements:

• Prepare GHI Software Solutions' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated software bugs fix costs on financial statements.
• Analyze the treatment of R&D expenses under the conservatism principle.