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 27, 2007 and May 28, 2006:

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 (1), explain how these items would be reported on the statement of cash flows.

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(In millions) Current liabilities: Accounts payable Short-term debt Accrued payroll Accrued income taxes May 27, 2007 May 28, 2006 $ 178.0 211.4 $ 213.2 44.0 108.5 123.2 75.9 64.8 Other accrued taxes 43.4 46.9 Unearned revenues 109.9 100.8 Current portion of long-term debt 149.9 Other current liabilities 305.0 283.3 Liabilities associated with assets held for sale 42.3 Total current liabilities $1,074.4 $1,026.1