GHI Travel Services arranges tours and travel packages. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Receipts	75.0
Credit Sales	30.0
Cash Payments	50.0
Accounts Receivable	25.0
Advertising Expenses	20.0
Estimated Cancellations Refunds	6.0

Requirements:

• Prepare GHI Travel Services' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated cancellations refunds on financial statements.
• Analyze the treatment of accounts receivable and advertising expenses under the conservatism principle.