Salaries payable do not directly appear on the cash flow statement under operating activities. Instead, the cash flow statement reflects actual cash transactions during the period. When salaries are recognized as an expense, the entry affects net income, which is the starting point for the operating activities section. However, any changes to salaries payable will be adjusted to the net income in the reconciliation for operating activities.
For instance, if salaries payable increased during the period, it implies that cash was preserved since the company did not pay out all the salaries it incurred. This increase would be added back to the net income in the cash flow from operating activities. Conversely, if salaries payable decreased, it indicates that cash was used to pay off some of those liabilities, leading to a deduction from the net income. So, while the salaries payable account itself does not appear, its movement does impact the cash flow statement through adjustments to the net income.