Microsoft Corporation is preparing its financial statements for the fiscal year 2023. The financial data includes:

Transactions (in $ millions)	Amount
Cash Sales	800,000
Credit Sales	350,000
Cash Payments	450,000
Accounts Receivable	150,000
Software Development Costs	300,000
Estimated Maintenance Costs	70,000
Administrative Expenses	100,000

Requirements:

• Prepare Microsoft's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated maintenance costs and administrative expenses on financial statements.
• Analyze the treatment of accounts receivable and software development costs under the conservatism principle.
• Prepare a balance sheet as of December 31, 2023.
• Calculate and interpret the debt-to-equity ratio and return on equity.