Instructions: Complete exercise following the requirements provided in your book.
The following items are classified as current liabilities on Burger King Holdings, Inc.'s balance sheets as of June 30, 2010, and June 30, 2009:
Accounts and drafts payable $106.9 $127.0
Accrued advertising $71.9 $67.8
Other accrued liabilities $200.9 $220.0
Current potion of long-term debt & capital leases $93.3 $67.5
Total current liabilities $473.0 $482.3
Term debt, net of current portion $667.7 $755.6
Capital leases, net of current portion $65.3 $65.8
Other liabilities $344.6 $354.5
Deferred income taxes, net $68.2 $74.1
Total liabilities $1,618.8 $1,732.3
1. Burger King uses the indirect method to prepare its statement of cash flows. Prepare the Operating Activities section of the cash flow statement, which indicated how each item will be reflected as an adjustment to net income.
This is illustrated for you simply with a table.