UVW Travel Services arranges travel packages. Financial transactions for 2023 are as follows:

Transactions (in $ millions)	Amount
Cash Receipts	40.0
Credit Sales	25.0
Cash Payments	28.0
Accounts Receivable	12.0
Advertising Expenses	10.0
Estimated Cancellations Refunds	3.0

Requirements:

• Prepare UVW Travel Services' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated cancellations refunds on financial statements.
• Analyze the treatment of accounts receivable and advertising expenses under the conservatism principle.