PQR Foods manufactures and distributes beverages. Financial transactions for 2023 include:

Transactions (in $ millions)	Amount
Cash Sales	220.0
Credit Sales	80.0
Cash Payments	160.0
Accounts Receivable	55.0
Raw Material Purchases	90.0
Estimated Spoilage	18.0

Requirements:

• Prepare PQR Foods' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated spoilage on financial statements.
• Analyze the treatment of accounts receivable and raw material purchases under the conservatism principle.