Verizon Communications is preparing its financial statements for 2023. The financial data includes:

Transactions (in $ millions)	Amount
Cash Sales	4,000,000
Credit Sales	2,000,000
Cash Payments	1,200,000
Accounts Receivable	280,000
Network Expansion Costs	1,400,000
Estimated Customer Claims	190,000

Requirements:

• Prepare Verizon Communications' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated customer claims on financial statements.
• Analyze the treatment of accounts receivable and network expansion costs under the conservatism principle.