Recife Company completed its first year of operations on December 31, 2025. Its initial income statement showed that Recife had revenues of R\($195,000\) and operating expenses of R\($78,000.\) Accounts receivable and accounts payable at year-end were R\($48,000\) and R\($25,000,\) respectively. Assume that accounts payable related to operating expenses. (Ignore income taxes.)

Instructions Compute net cash provided by operating activities using the direct method.

Compute cash payments—direct method.