VWX Tech produces electronic devices. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Sales	300.0
Credit Sales	120.0
Cash Payments	200.0
Accounts Receivable	80.0
Manufacturing Costs	150.0
Estimated Product Defects	25.0

Requirements:

• Prepare VWX Tech's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product defects on financial statements.
• Analyze the treatment of accounts receivable and manufacturing costs under the conservatism principle.