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 as of May $31,$ the end of the first quarter of a recent year, is presented along with an analysis of selected accounts and transactions:

ROCKY MOUNTAIN CHOCOLATE FACTORY, INCORPORATED

Balance Sheets

Assets May $31($Unaudited$)$ February $29$

Current assets

Cash and cash equivalents $ $921,505$ $ $528,787$

Accounts and notes receivable$$trade$,$ less allowance for doubtful accounts of $$43,196$ at May $31$ and $$28,196$ at February $291,602,5821,463,901$

Inventories $2,748,7882,504,908$

Deferred tax asset $59,21959,219$

Other $581,508224,001$

Total current assets $5,913,6024,780,816$

Property and equipment$$at cost $14,010,79612,929,675$

Less accumulated depreciation and amortization $(2,744,388)(2,468,084)$

$11,266,40810,461,591$

Other assets

Notes and accounts receivable due after one year $100,206111,588$

Goodwill and other intangibles, net of accumulated amortization of $$259,641$ at May $31$ and $$253,740$ at February $29330,359336,260$

Other $574,130624,185$

$1,004,6951,072,033$

$ $18,184,705$ $ $16,314,440$

Liabilities and Equity

Current liabilities

Short$-$term debt $ $0$ $ $1,000,000$

Current maturities of long$-$term debt $429,562134,538$

Accounts payable$$trade $1,279,455998,520$

Accrued liabilities $714,473550,386$

Income taxes payable $11,19854,229$

Total current liabilities $2,434,6882,737,673$

Long$-$term debt, less current maturities $4,193,2902,183,877$

Deferred income taxes $275,508275,508$

Stockholders' Equity

Common stock$$authorized $7,250,000$ shares, $$0\mathrm{.}03$ par value; issued $3,034,302$ shares at May $31$ and at February $2991,02991,029$

Additional paid$-$in capital $9,703,9859,703,985$

Retained earnings $2,502,1042,338,267$

$12,297,11812,133,281$

Less common stock held in treasury, at cost$129,153$ shares at May $31$ and at February $291,015,8991,015,899$

$11,281,21911,117,382$

$ $18,184,705$ $ $16,314,440$

The accompanying notes are an integral part of these statements.

Source: Rocky Mountain Chocolate Factory, Incorported

Analysis of Selected Accounts and Transactions:

Net income was $$163,837.$ Notes and accounts receivable due after one year relate to operations.

Depreciation and amortization totaled $$282,205.$

No $$other$$ noncurrent assets $($which relate to investing activities$)$ were purchased this period.

No property, plant, and equipment were sold during the period. No goodwill was acquired or sold.

Proceeds from issuance of long$-$term debt were $$4,659,466,$ and principal payments were $$2,355,029.($Combine the current maturities with the long$-$term debt in your analysis.$)$

No dividends were declared or paid.

Ignore the $$deferred tax asset$$ and $$deferred income taxes$$ accounts.

Required:

Prepare a statement of cash flows for the quarter ended May $31,$ using the indirect method.

Note: List cash outflow as negative amounts.