XYZ Pharmacy sells pharmaceutical products. Financial transactions for 2023 are provided below:

Transactions (in $)	Amount
Cash Sales	100,000
Credit Sales	50,000
Cash Payments	80,000
Accounts Payable Paid	12,000
Inventory Purchases	60,000

Requirements:

• Prepare XYZ Pharmacy'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 statements.