XYZ Marketing Agency provides advertising services. Financial transactions for 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Receipts	40.0
Accounts Receivable Collected	5.0
Cash Payments	30.0
Accounts Payable Paid	10.0
Operating Expenses	15.0

Requirements:

• Prepare XYZ Marketing Agency'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 operating expenses and payments to accounts payable under the modified cash basis.
• Analyze the impact of including accounts receivable collected on financial reporting.