Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4. Insurance expense was $20,000 for 20X5 and $15,000 for 20X4.

What amount of cash disbursements for insurance should be reported in Rory's 20X5 net cash flows from operating activities presented on a direct basis?

The answer is $45,000.

*how to get $45,000?

**how are insurance payment and insurance expense different? It's asking cash disbursements...is it the same as insurance payment or expense?

Please help,

thank you in advance.