Johnson & Johnson is preparing its financial statements for 2023. The financial data includes:

Transactions (in $ millions)	Amount
Cash Sales	800,000
Credit Sales	400,000
Cash Payments	450,000
Accounts Receivable	150,000
R&D Expenses	300,000
Estimated Product Liability	70,000

Requirements:

• Prepare Johnson & Johnson's income statement for 2023 using the modified cash basis.
• Calculate net income considering the conservatism principle.
• Discuss the impact of estimated product liability on financial statements.
• Analyze the treatment of accounts receivable and R&D expenses under the conservatism principle.