XYZ Builders constructs commercial properties. Financial transactions for 2023 include:

Transactions (in $ millions)	Amount
Contract Revenue	100.0
Accounts Receivable	20.0
Cash Payments	60.0
Accounts Payable	15.0
Construction Costs	50.0
Estimated Warranty Costs	10.0

Requirements:

• Prepare XYZ Builders' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated warranty costs on financial statements.
• Analyze the treatment of accounts receivable under the conservatism principle.