Consolidated Statement of Cash Flows  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 Note  2010  $’000  2009  $’000  CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers  508,714 550,769 Interest received  1,474 1,492 Finance costs  (2,968) (4,768) Cash paid to suppliers and employees  (451,6 83) (494,189) Income tax paid  (8,792) (14,715) NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 25(a)  46,745 38,589 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of subsidiaries, net of cash acquired  25(d)  (129,4 86) (42,023) Payment of direct costs of acquisition  - (620) Proceeds from sale of property, plant &  equipment  691 1,588  Payments for property, plant & equipment  (3,126) (9,716) NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES (131,9 21) (50,771) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares  20,704 28,587 Share issue transaction costs  (56) - Proceeds from borrowings  101,086 - Repayment of borrowings  Finance lease payments  (19,42 7) (2,589) 14,350  -  Dividends paid  (22,30 1) (19,374) NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES 77,417 23,563 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS  HELD (7,759) 11,381 CASH AND CASH EQUIVALENTS AT 1 JULY 65,808 52,624 Effects of exchange rate changes on cash and  cash equivalents at the end of year (1,767) 1,803  CASH AND CASH EQUIVALENTS AT 30 JUNE 25(b)  56,282 65,808 The statement of cash flow should be read in conjunction with notes 1 to 38 which form part of the financial statements.  Page 30 of 80 