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

Transactions (in $ millions)	Amount
Cash Sales	1,300,000
Credit Sales	650,000
Cash Payments	750,000
Accounts Receivable	190,000
R&D Expenses	600,000
Estimated Product Liability	130,000
Depreciation Expense	80,000

Requirements:

• Prepare Johnson & Johnson's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product liability and depreciation expense on financial statements.
• Analyze the treatment of accounts receivable and R&D expenses under the conservatism principle.
• Prepare a balance sheet as of December 31, 2023.
• Calculate and interpret the times interest earned ratio and gross profit margin.