Effects of Darden Restaurants€™ Changes in Current Assets and Liabilities on Its Statement of Cash Flows The following items, listed in alphabetical order, are included in the Current Liabilities category on the consolidated balance sheet of Darden Restaurants at May 25, 2008, and May 27, 2007:

Required
1. Darden Restaurants uses the indirect method to prepare its statement of cash flows. Prepare the Operating Activities section of the cash flow statement, which indicates how each item will be reflected as an adjustment to net income.
2. If you did not include any of the preceding items in your answer to part (1), explain how these items would be reported on the statement of cashflows.

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(In millions) May 25, 2008 May 27, 200 Current liabilities: Accounts payable Short-term debt Accrued payroll Accrued income taxes Other accrued taxes Unearned revenues Other current liabilities Liabilities associated with assets held for sale 245.1 178.4 129.3 2.4 55.4 160.5 365.1 178.0 2114 108.5 75.9 43.4 109.9 305.0 42.3 $1,074.4 Total current liabilities $1,136.2