Kelly McGillis Company completed its first year of operations on December 31, 1998. Its initial income statement showed that Kelly McGillis had revenues of \(\$ 157,000\) and operating expenses of \(\$ 78,000\). Accounts receivable and accounts payable at year end were \(\$ 42,000\) and \(\$ 33,000\), respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.

\section*{Instructions}

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