Variations in the pattern of cash flows The 2021 statement of cash flows for Telstra Limited is shown. Explain these changes in the pattern of cash flows between 2021 and 2020.

TELSTRA GROUP Year ended 30 June 2021 2020 Note $m $m Cash flows from operating activities Receipts from customers (inclusive of goods and services tax (GST)) 26 727 29 506 Payments to suppliers and employees (inclusive of GST) (18 901) (21 895)

Government grants received for operating activities 167 153 Net cash generated by operations 7 993 7 764 Income taxes paid 2.4 (762) (754)

Net cash provided by operating activities 2.6 7 231 7 010 Year ended 30 June 2021 2020 Note $m $m Cash flows from investing activities Payments for property, plant and equipment (2 079) (2 341)
Payments for intangible assets (1 061) (1 101)
Capital expenditure (before investments) (3 140) (3 442)
Payments for shares in controlled entities (net of cash acquired) (26) –
Payments for equity accounted investments (30) (33)
Payments for other investments (152) (122)
Total capital expenditure (including investments) (3 348) (3 597)
Proceeds from sale of property, plant and equipment 154 258 Proceeds from sale and leaseback 3.2 291 18 Proceeds from sale of businesses and shares in controlled entities (net of cash disposed)
218 58 Proceeds from sale of equity accounted and other investments 147 15 Distributions received from equity accounted investments 20 83 Receipts for the principal portion of finance lease receivables 120 135 Government grants received for investing activities 36 28 Interest received 18 26 Net cash used in investing activities (2 344) (2 976)
Operating cash flows less investing cash flows 4 887 4 034 Cash flows from financing activities Proceeds from borrowings 2 308 5 476 Repayment of borrowings (3 260) (6 562)
Payment for the principal portion of lease liabilities 3.2 (706) (993)
Purchase of shares for employee share plans (39) (22)
Finance costs paid (613) (812)
Dividends paid to non-controlling interests (35) (23)
Dividend paid to equity holders of Telstra Entity 4.2 (1 902) (1 903)
Proceeds from the sale of units in a controlled trust – 698 Other 11 3 Net cash used in financing activities (4 236) (4 138)
Net increase/(decrease) in cash and cash equivalents 651 (104)
Cash and cash equivalents at the beginning of the year 499 604 Effects of exchange rate changes on cash and cash equivalents (25) (1)
Cash and cash equivalents at the end of the year 2.6 1 125 499