XYZ Law Firm provides legal representation. Financial transactions for 2023 are detailed below:

Transactions (in $)	Amount
Cash Receipts	150,000
Accounts Receivable Collected	20,000
Cash Payments	100,000
Accounts Payable Paid	30,000
Rent Expense	15,000

Requirements:

• Prepare XYZ Law Firm's 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 rent expense and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.