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 2015 and 2014:

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 a positive amount on the statement of cash flows.

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Brinker Intermational, Inc. Consolidated Balance Sheets (In thousands, except share and per share amounts) 2015 2014 Current Liabilities: Current ins tallments of long term debt Accounts payable Gift card liability Accrued payroll Other accrued liabilities Income taxes payable $ 3,439 92,947 114,726 82,915 111,197 13,251 $418,475 $ 27,884 102,931 104,378 77,585 146,054 7,278 $466,110 Total current liabilities