XYZ IT Solutions offers tech services. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Receipts	35.0
Accounts Receivable Collected	5.0
Cash Payments	25.0
Accounts Payable Paid	7.0
Equipment Purchases	10.0

Requirements:

• Prepare XYZ IT Solutions' income statement for 2023 using the modified cash basis.
• Calculate the net income, considering cash receipts, payments, and collections from accounts receivable.
• Discuss the treatment of equipment purchases and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.