XYZ Furniture produces and sells furniture. Financial transactions for 2023 are provided below:

Transactions (in $ millions)	Amount
Cash Sales	90.0
Credit Sales	35.0
Cash Payments	70.0
Accounts Receivable	30.0
Raw Material Purchases	50.0
Estimated Warranty Costs	8.0

Requirements:

• Prepare XYZ Furniture's 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 raw material purchases under the conservatism principle.