The amount reported as Increase/(decrease) in payables in the reconciliation section of the statement of cash flows should tie to the difference in payables between the previous fiscal year and the current fiscal year as reported on the balance sheet.
For instance, if payables related to operating activities at year end for the previous year were $65,500 and at current year-end were $68,000, $2,500 should be added back in the reconciliation (since it is an increase in a liability balance).