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:

(In millions) May 25, 2008 May 27, 2007 Current liabilities:

Accounts payable $ 245.1 $ 178.0 Short-term debt 178.4 211.4 Accrued payroll 129.3 108.5 Accrued income taxes 2.4 75.9 Other accrued taxes 55.4 43.4 Unearned revenues 160.5 109.9 Other current liabilities 365.1 305.0 Liabilities associated with assets held for sale — 42.3 Total current liabilities $1,136.2 $1,074.4 Required 1. Darden Restaurants uses the indirect method to prepare its statement of cash fl ows.
Prepare the Operating Activities section of the cash fl ow statement, which indicates how each item will be refl ected 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 cash fl ows.AppendixLO1