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

Transactions (in $ millions)	Amount
Cash Sales	2,500,000
Credit Sales	1,250,000
Cash Payments	950,000
Accounts Receivable	250,000
R&D Expenses	1,000,000
Estimated Litigation Costs	160,000

Requirements:

• Prepare Pfizer Inc.'s income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated litigation costs on financial statements.
• Analyze the treatment of accounts receivable and R&D expenses under the conservatism principle.