Rocky Mountain Chocolate Factory manufactures an extensive line of premium chocolate candies for sale at its franchised and company-owned stores in malls throughout the United States. Its balance sheet for the first quarter of a recent year is presented along with an analysis of selected accounts and transactions:

Analysis of Selected Accounts and Transactions:
a. Net income was $163,837. Notes and accounts receivable due after one year relate to operations.
b. Depreciation and amortization totaled $282,205.
c. No €œother€ noncurrent assets (which relate to investing activities) were purchased this period.
d. No property, plant, and equipment were sold during the period. No goodwill was acquired or sold.
e. Proceeds from issuance of long-term debt were $4,659,466, and principal payments were $2,355,029. (Combine the current maturities with the long-term debt in your analysis.)
f. No dividends were declared or paid.
g. Ignore the €œdeferred tax asset€ and €œdeferred income taxes€ accounts.
Required:
Prepare a statement of cash flows using the indirect method for theyear.

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ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. Balance Sheets May 31 (Unaudited) Assets February 29 Current assets $ 921,505 $ 528,787 Cash and cash equivalents Accounts and notes receivable trade, less allowance for doubtful accounts of $43,196 at May 31 and $28,196 at February 29 Inventories 1,602,582 1,463,901 2,748,788 59,219 2,504,908 59,219 224,001 Deferred tax asset Other 581,508 Total current assets 5,913,602 14,010,796 4,780,816 12,929,675 Property and equipment-at cost Less accumulated depreciation and amortization -2,744.388 11,266,408 -2,468,084 10,461,591 Other assets Notes and accounts receivable due after one year Goodwill and other intangibles, net of accumulated amortization of $259,641 at May 31 and $253,740 at Feb. 29 100,206 111,588 330,359 574,130 1,004,695 $18,184,705 336,260 Other 624,185 1,072,033 $16.314,440 Liabilities and Equity Current liabilities Short-term debt $ 1,000,000 Current maturities of long-term debt Accounts payable trade Accrued liabilities 429,562 134,538 1,279,455 714,473 998,520 550,386 Income taxes payable 11,198 54,229 Total current liabilities 2,434,688 2,737,673 Long-term debt, less current maturities Deferred income taxes Stockholders' Equity Common stock-authorized 7,250,000 shares, $.03 par value; 4,193,290 2,183,877 275,508 275,508 91,029 issued 3,034,302 shares at May 31 and at Feb. 29 Additional paid-in capital Retained eamings 91,029 9,703,985 9,703,985 2,502,104 2,338,267 12,297,118 12,133,281 Less common stock held in treasury, at cost-129,153 shares at May 31 and at February 29 1,015,899 1,015,899 11,281,219 11,117,382 $18.184.705 $16.314,440