XYZ Health Services provides medical care. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Patient Service Revenue	140.0
Accounts Receivable	60.0
Cash Payments	90.0
Accounts Payable	30.0
Medical Supplies Purchases	70.0
Estimated Bad Debts	10.0

Requirements:

• Prepare XYZ Health Services' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated bad debts on financial statements.
• Analyze the treatment of accounts receivable and medical supplies purchases under the conservatism principle.