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

Transactions (in $ millions)	Amount
Cash Sales	900,000
Credit Sales	450,000
Cash Payments	500,000
Accounts Receivable	160,000
Advertising Expenses	350,000
Estimated Product Recalls	80,000

Requirements:

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