WXY Consulting provides business consulting services. Financial transactions for 2023 are summarized below:

Transactions (in $)	Amount
Cash Receipts	200,000
Credit Sales	100,000
Cash Payments	120,000
Accounts Receivable	50,000
Professional Fees	70,000
Estimated Legal Disputes	15,000

Requirements:

• Prepare WXY Consulting's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated legal disputes on financial statements.
• Analyze the treatment of accounts receivable and professional fees under the conservatism principle.