Brinker International operates Chili's, Macaroni Grill, and other restaurant chains. The following items are classified as current liabilities on Brinker International's balance sheets as of 2014 and 2013:

Required
1. Brinker 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. Explain why an increase in a current liability account such as Accounts Payable appears as .1 positive amounts on the statement of cash flows.

Brinker International, Inc. 2014 2013 (In thousands) Current Liabilities: Current installments of long-term debt Accounts payable Accrued liabilities Income taxes payable Deferred income taxes S 27,884 102,931 328,017 7,278 0 $466,110 S 27,596 93,326 269,465 0 845 $391,232 Total current liabilities