IBM is preparing its financial statements for 2023. The financial data includes:

Transactions (in $ millions)	Amount
Cash Sales	2,200,000
Credit Sales	1,100,000
Cash Payments	900,000
Accounts Receivable	240,000
Software Development Costs	900,000
Estimated Software Bugs	150,000

Requirements:

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