XYZ Builders constructs residential properties. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Receipts	150.0
Credit Sales	55.0
Cash Payments	100.0
Accounts Receivable	40.0
Construction Costs	80.0
Estimated Warranty Costs	18.0

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 and construction costs under the conservatism principle.