DEF Electronics sells consumer electronics. Financial transactions for 2023 are detailed below:

Transactions (in $ millions)	Amount
Cash Sales	150.0
Credit Sales	60.0
Cash Payments	100.0
Accounts Receivable	50.0
Inventory Purchases	90.0
Estimated Product Returns	12.0

Requirements:

• Prepare DEF Electronics' income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product returns on financial statements.
• Analyze the treatment of accounts receivable and inventory purchases under the conservatism principle.