JKL E-commerce sells apparel online. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Sales	110.0
Credit Sales	55.0
Cash Payments	80.0
Accounts Receivable	40.0
Inventory Purchases	70.0
Estimated Product Returns	8.0

Requirements:

• Prepare JKL E-commerce's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product returns on financial statements.
• Analyze the treatment of accounts receivable and inventory purchases under the conservatism principle.