XYZ Service Solutions provides IT support services. Financial transactions for the year 2023 are summarized below:

Transactions (in $ millions)	Amount
Cash Receipts	25.0
Accounts Receivable Collected	5.0
Cash Payments	15.0
Accounts Payable Paid	7.0
Operating Expenses	10.0

Requirements:

• Prepare XYZ Service Solutions' income statement using the modified cash basis.
• Calculate the net income considering cash receipts, payments, and collections from accounts receivable.
• Discuss how operating expenses and payments to accounts payable are treated under the modified cash basis.
• Analyze the impact of including accounts receivable collected on XYZ Service Solutions' financial statements.