1. PQR Electronics sells home appliances. Financial transactions for 2023 are as follows:

Transactions (in $)	Amount
Cash Sales	250,000
Credit Sales	80,000
Cash Payments	180,000
Accounts Receivable	40,000
Inventory Purchases	120,000
Estimated Inventory Obsolescence	10,000

1. Requirements:
   • Prepare PQR Electronics' income statement for 2023 using the modified cash basis.
   • Calculate net income considering the conservatism principle.
   • Discuss the impact of estimated inventory obsolescence on financial statements.
   • Analyze how conservatism principle affects the treatment of accounts receivable.