XYZ Travel Agency arranges tours and travel packages. Financial transactions for 2023 include:

Transactions (in $ millions)	Amount
Cash Receipts	90.0
Credit Sales	40.0
Cash Payments	60.0
Accounts Receivable	30.0
Advertising Expenses	25.0
Estimated Cancellations Refunds	10.0

Requirements:

• Prepare XYZ Travel Agency's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated cancellations refunds on financial statements.
• Analyze the treatment of accounts receivable and advertising expenses under the conservatism principle.