XYZ Consulting provides advisory services. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Receipts	50.0
Accounts Receivable Collected	7.0
Cash Payments	35.0
Accounts Payable Paid	5.0
Professional Fees	10.0

Requirements:

• Prepare XYZ Consulting's income statement for 2023 using the modified cash basis.
• Calculate the net income, considering cash receipts, collections from accounts receivable, and cash payments.
• Discuss the treatment of professional fees and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.
• Evaluate XYZ Consulting's profitability based on cash transactions and selected accruals.