XYZ Pharmacy Chain operates multiple retail locations. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Sales	120.0
Credit Sales	50.0
Cash Payments	80.0
Accounts Payable Paid	15.0
Inventory Purchases	60.0

Requirements:

• Prepare XYZ Pharmacy Chain's income statement for 2023 using the modified cash basis.
• Calculate the net income, considering cash sales, credit sales, and cash payments.
• Discuss the treatment of inventory purchases and payments to accounts payable under the modified cash basis.
• Analyze the impact of including credit sales on financial reporting.
• Evaluate XYZ Pharmacy Chain's cash flow position and liquidity based on cash transactions.