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The taxes payable account affects cash flow from operating activities by reflecting the timing of tax payments. An increase in the taxes payable account indicates that a company has accrued tax liabilities without yet making cash payments, which effectively boosts cash flow from operating activities in the short term. Conversely, a decrease in the taxes payable account suggests that the company has paid down its tax liabilities, resulting in a reduction of cash flow from operating activities. Therefore, changes in this account can significantly influence the reported cash flow for the year.

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1mo ago

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