(Solved by Humans)-Problem 9-3A Effects of Darden Restaurants’ Changes in Current Assets and Liabilities on Its...

Paper Details

Problem 9-3A Effects of Darden Restaurants’ Changes in Current Assets and Liabilities on Its Statement of Cash Flows The following items are included in the Current Liabilities category on the consolidated balance sheet of Darden Restaurants at 2011 and 2010:                   Darden Restaurants, Inc.   Alternate Problems Consolidated Balance Sheets     (in millions) 2011 2010 Current liabilities:     Accounts payable $   260.7 $   251.3 Short-term debt 262.7 185.5 Accrued payroll 154.3 167.1 Accrued income taxes — 9.3 Other accrued taxes 60.4 64.3 Unearned revenues 231.7 200.0 Current portion of long-term debt 349.9 — Other current liabilities 454.4 409.3 Total current liabilities $1,774.1 $1,286.8     477                                 Source: Darden Restaurants, Inc., 2011 Form 10-K.   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.