XYZ Advertising provides digital marketing services. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Receipts	120.0
Credit Sales	50.0
Cash Payments	90.0
Accounts Receivable	40.0
Operating Expenses	45.0
Estimated Campaign Failures	20.0

Requirements:

• Prepare XYZ Advertising's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated campaign failures on financial statements.
• Analyze the treatment of accounts receivable and operating expenses under the conservatism principle.