XYZ Manufacturing produces consumer electronics. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Sales	120.0
Credit Sales	60.0
Cash Payments	90.0
Accounts Receivable	40.0
Raw Material Purchases	50.0
Estimated Product Returns	10.0

Requirements:

• Prepare XYZ Manufacturing's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product returns on financial statements.
• Analyze the treatment of accounts receivable and raw material purchases under the conservatism principle.