The following items are included in the Current Liabilities category on the consolidated balance sheet of Darden Restaurants at May 30, 2010, and May 31, 2009:

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 cash flows.

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(in millions) May 30, 2010 May 31, 2009 Current liabilities: $ 246.4 $ 237.0 Accounts payable Short-term debt 150.0 138.3 Accrued payroll 161.8 1.0 Accrued income taxes Other accrued taxes 62.0 60.2 Unearned revenues 167.2 138.3 Current portion long-term debt 225.0 Other current liabilities 391.2 372.3 $1,254.6 $1,096.1 Total current liabilities